CNOOC, SPC sign production sharing contract

China National Offshore Oil Company Limited (CNOOC Ltd) announced Monday that its parent China National Offshore Oil Corporation (CNOOC) has signed a production sharing contract with Singapore Petroleum Company Ltd (SPC) for a block in the South China Sea, Xinhua reported (in Chinese). Under the terms of the contract, all costs incurred during the exploration period will be borne by SPC and CNOOC Ltd is entitled to take an interest of up to 51% in any viable discoveries in the block. A circular jointly released by the Ministry of Finance (MOF) and the General Administration of Customs in July said the government would impose duties on oil exports by foreign partners in offshore oil production if contracts with Chinese partners are signed after August 1. SPC would be the first foreign company covered by the new regulation.