The Linxing PSC comprises 877 km2, including 722 km2 in Linxing West and Linxing East and 155 km2 of prospective CBM acreage in Linxing East.
SEH has a 24% net participating interest in the Linxing PSC through its shareholding of SGE (pre-exercise of the Linxing Option and assuming full back-in of PSC partner). SGE (SEH 49%, CNEML 51%) holds a 49% interest in the Linxing PSC. Linxing PSC partner CUCBM (subsidiary of CNOOC) is entitled to participate up to its 51%-PSC participating interest by contributing its future share of costs.
It was announced on 12 June 2018 that SGE and CUCBM had entered into the 11th Modification Agreement (“MA11”) which includes:
- A reduction in SGE’s natural gas participating interest from 70% to 49% (prior to the impact of the Linxing Option) to satisfy CUCBM’s stated internal requirements
- An 8-year extension of the natural gas PSC to 31 August 2036; and
- Relinquishment of ~1,000 km2 of Linxing East exploration acreage and extension of the exploration period to 31 August 2019.