Oil & Gas Industry: Eni signs a new contract with CNOOC for exploration in the South China Sea

Eni has signed a new Production Sharing Contract (‘PSC’) with CNOOC for the exploration of one block offshore Hainan island, in the South China Sea. The Block 50/34 covers an area of about 2,000 sq km in the Qiongdongnan Basin in conventional waters. The exploration period will last 6.5 years, subdivided in 3 phases.

This new PSC confirms the interest of Eni to continue and consolidate its presence in China, particularly in the South China Sea, where the company cooperates with the Chinese NOCs since middle 80’s, both for exploration and production.

Background
The offshore block was one of 26 offered by CNOOC in a second tender of offshore blocks in 2012. The tender, announced in August 2012, followed an earlier block tender in June 2012 and included 22 blocks in the strategically important South China Sea.