SMART OIL signed a PSCA with CNOOC on block 09/17 in Bohai offshore on 12 April 2019. The block is located in the Qikou sag, Bohai Gulf Basin. It covers a total area of 509.3 sq km with a water depth of 5-10 meters.  According to the terms of the PSC, Smart Oil shall act as the Operator during the exploration period and conduct exploration activities in the block mentioned above, in which all expenditures incurred will be borne by Smart Oil. Once entering the development phase, CNOOC has the right to participate in up to 51% of the participating interest in any commercial discoveries of the Bohai 09/17 Block.   The block was offered for bid by CNOOC in 2018 bidding round.  Bohai - Block 09/17    Block 09/17 is located in the west part of the Bohai offshore and surrounded by Qikou Field Group. It is a relatively exploration mature area, the main targets in the block are Tertiary clastic and pre-Tertiary basement plays.   The block covers most area of 09/05 PSCA which was operated by Roc Oil. Â   In May 2012, Roc Oil signed 09/05 PSCA with CNOOC in Bohai offshore. The 335 sq km Bohai block is located approximately 15 km north of ROCâs existing Zhao Dong production and appraisal blocks in water depths of 4-10 m.   Roc Oil completed a 162 sq km 3D seismic survey over Block 09/05 in September 2013.   In 2014, Roc Oil drilled the QK11-1-1 well without commercial discovery in this block.   In 2015 Roc Oil completed QK12-3-1D. The well penetrated good quality sands in the targeted zones but without hydrocarbon shows.   It is believed that the reason for failure is relating to hydrocarbon charging issue.   In 2016, after two dry holes drilled, Roc Oil decided to relinquish Bohai offshore PSC 09/05 block in the Bohai Gulf Basin.   Background Information  Smart Oil also has a PSCA 05/31 with CNOOC in the Bohai offshore, which was signed in 2013. The company has completed four wells in the block and made two discoveries, CFD 1-2-1 and CFD 2-4-1.   In addition, Smart Oil together with Roc Oil signed a production sharing contract (PSC) with CNOOC in July 2018 for Weizhou 10-3W oilfield and Block 22/04 in the Beibu Gulf Basin, South China Sea.
China (Beibu Gulf B.) Weizhou 10-3W