OREANDA-NEWS.  July 03, 2014. Italian oil and gas firm Eni has signed a new production sharing contract (PSC), for the exploration of one block offshore Hainan island, in the South China Sea, with China National Offshore Oil Corporation (CNOOC).

The Block 50/34 block covers an area of approximately 2,000km? in the Qiongdongnan Basin in conventional waters.

Under the contract, Eni will conduct 3D seismic survey and drill an exploration well in the block during the six-and-half-year exploration period.

Eni will bear all the expenditures during the period, which is planned to be subdivided in three phases.

The contract confirms its ENI's intention to expand its position in China and especially in the South China Sea area.

Engaged in exploration, development, production and sale of offshore oil and natural gas, CNOOC has oil and gas assets in Asia, Africa, North America, South America, Oceania and Europe.