Kuwaiti KUFPEC signs three Production Sharing Contracts

KUWAIT: Kuwait Foreign Petroleum Exploration Company, KUFPEC, announced Wednesday that its subsidiary, KUFPEC China, has signed three Production Sharing Contracts (PSCs) covering three new exploration blocks located in the South China Sea adjacent to the Yacheng pipeline.

In an exclusive statement to Kuwait News Agency, KUNA, KUFPEC pointed out that in the event of a commercial discovery in any of the new exploration blocks, KUFPEC China will have a 30 percent working interest in the development of such a discovery.

The remaining working interest will be held by the operator, a subsidiary of China National Offshore Oil Corporation, CNOOC.

The statement noted that these new exploration activities in the People’s Republic of China are further steps taken by KUFPEC as part of its strategy to expand its oil and gas exploration and production operations worldwide.

“Our new exploration licenses allow us continue to work with CNOOC to take full advantage of our excellent working relationship in the Yacheng Field in the South China Sea, where KUFPEC China holds a 30 percent working interest,” KUFPEC Chief Executive Officer, Sheikh Nawaf S. Al-Sabah, said in the statement.

Production from the Yacheng offshore gas field has been supplying natural gas for power generation to Hong Kong via a 780 km pipeline since 1996.

Additional natural gas, condensate and LPG are sold to customers on Hainan Island.

SOURCE: WAM