Ann: Service Contract 58 - Election to Drill Exte, page-14

re: Ann: Service Contract 58 - Election to Dr... Niu,

Just to be clear about the farm out situation, a single major will probably require anywhere from a 60 - 80% WI in the block. This allows them leeway for risk mitigation down the line.

In this regard, PNOC will also be amenable to farming out a major portion of their WI in the block.
PNOC already have a farm out flyer on SC63 which by comparison is a much cheaper block to work.

In 2009 when BHPP farmed into SC59 (also a DW block), PNOC retained a 25% WI (BHPP 75%).

I think the big problem here is the scrutiny of China, and this may be the ticket for another DOE extension to the sub-phase 3 well commitment date.