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SPC and CNOOC sign production sharing contract for Chinese block

SPC and CNOOC sign production sharing contract for Chinese block

Singapore: Keppel Corporation subsidiary, Singapore Petroleum Company (SPC), has entered a production sharing contract with China National Offshore Oil Corporation (CNOOC) for oil and gas exploration in Block 26/18. Subject to final governmental approvals, SPC will operate the 4,961sq km Block located in the Pearl River Mouth Basin, South China Sea. The Block is approximately 150 kilometres from shore in water depths of between 85 and 200 metres.

Koh Ban Heng, SPC ceo said, "We are very pleased to build an alliance with CNOOC, a major offshore oil and gas producer, for this foothold in the large China oil and gas market. Gaining entry into China will allow SPC to tap its vast market and further strengthen SPC's exploration and production portfolio".

Under the contract, SPC is committed to conduct seismic survey and exploration drilling. CNOOC has the right to participate in up to a participating interest of 51% in the PSC, upon a commercial discovery.  [06/08/07]