International companies are set to embark on a fresh wave of exploration drilling in the South China Sea as part of their commitments under production sharing contracts with China National Offshore Oil Corporation (CNOOC).

First off the blocks is likely to be South Korea’s SK Innovation, which will soon start drilling two exploration wells, one each at Block 04/20 and Block 17/03, where it has been licensed to explore in the Pearl River Mouth basin since early 2015.

Drilling should have started early in the second half this year, but was slightly delayed as drilling contractor China Oilfield Service Ltd (COSL) introduced new turnkey drilling services. Sources said COSL is set to use the semi-submersible Nanhai 6 for SK Innovation’s campaign.

Block 04/20 covers 5138 square kilometres in water depths of 50 to 100 metres, while Block 17/03 covers 7686 square kilometres in similar water depths.

The PSC with SK Innovation follows a more flexible model that earlier such agreements in China, with the South Korean company acting as operator but CNOOC covering 20% of exploration costs and SK Innovation 80%.

Upon entering any development phase, CNOOC has the right to participate in up to 60% of the working interest. Meanwhile, Australia’s Roc Oil has also lined up a two-well plan, starting next March, at blocks 03/33 and 16/07 in the South China Sea, where it has a 100% exploration interest.

Block 16/07 covers 2743 square kilometres in water depths of 100 metres, while Block 03/33 covers 2367 square kilometres in 65 to 145 metres of water.

Kuwait Foreign Petroleum Exploration Company (Kufpec) aims to drill two wells in the Yinggehai basin in the South China Sea next year. The company is licensed to explore three blocks — 52/22, 52/26, and 63/13 — where it has drilled four unsuccessful wells so far.

Block 52/22 covers 1896 square kilometres in 60 to 300 metres of water, while Block 52/26 covers 1783 square kilometres in 80 to 160 metres of water and Block 63/13 covers 698 square kilometres in 80 to 140 metres of water.

In addition to these three blocks, Kufpec has a 30% working interest in the producing Yaccheng 13-1 gas field, output from which is piped to Hong Kong for power generation.

Canadian independent Husky is currently re-tendering a rig for a four-well campaign at blocks 15/33 and 16/25 in the Pearl River Mouth basin, and also has an option for a further well in that campaign.

Block 15/33 covers 155 square kilometres in water depths between 80 and 100 metres, while Block 16/25 covers 44 square kilometres with a water depth of 100 metres.

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South China Sea set for fresh exploration drive