According to contract between Husky and CNOOC, the exploration will be divided into three phases
Canadian oil firm Husky Energy will drill an oil well at a water depth of 1,500 meters in the South China Sea at the end of April, reported sources with Husky on Tuesday.
According to contract between Husky and CNOOC, the exploration will be divided into three phases. Husky will drill one well in each phase and all expenditures incurred during the exploration period will be borne by Husky. CNOOC will command up to a 51 percent interest in the event of any commercial discovery in the block.
The well may be the first real deepwater well in China, said a senior manager of Husky who refused to disclose his name.
According to him, drilling was delayed from last December due to a lack of a deep-water drilling vessel. "This time it will be done on time," he said.
As the charter for the deepwater drilling vessel of Husky was signed at the end of 2004, the daily fee was about 200,000 US dollars. Now, with soaring oil prices, the current rent charge has been doubled.
