By Andy Sambidge
International arm of Kuwait's state oil company announces three new agreements in South China Sea
The international arm of Kuwait's state oil company has announced that its Chinese subsidiary has three agreements covering three new exploration blocks located in the South China Sea.
Kuwait Foreign Petroleum Exploration Company (KUFPEC) said 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.
The remaining working interest will be held by the operator, a subsidiary of China National Offshore Oil Corporation (CNOOC).
"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," a statement said.
KUFPEC CEO Shaikh Nawaf S Al-Sabah said: “Our new exploration licences 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.”
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.
KUFPEC is currently active in 15 countries with 63 projects in Asia, Africa, Middle East, Europe, North America and Australia.
KUFPEC said it is working towards achieving its strategic plans aiming to increase its production to 200,000 barrels of oil equivalent per day (BOEPD) with reserves of 650 million barrels of oil equivalent (MMBOE) by year 2020 and maintaining it until year 2030.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.