SINGAPORE -- Singapore Petroleum Co. Ltd. subsidiary SPC E&P (China) Pte. Ltd. has entered into a production-sharing contract with China National Offshore Oil Corp. for block 26/18.
The 4,961-sq-km (1,915.5 sq mi) block lies in the Pearl River Mouth basin in the South China Sea. The block is approximately 150 km (93 mi) from shore in 85-200 m (279-656 ft) water depths.
SPC, which will operate the block with a 100% participating interest, plans to conduct a seismic survey and to carry out exploration drilling. CNOOC has the right to secure participating interest up to 51% upon a commercial discovery.
"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," says Koh Ban Heng, CEO. "SPC has steadily grown its presence in the regional exploration and production sector since 2000. Gaining entry into China will allow SPC to tap its vast market and further strengthen SPC's exploration and production portfolio."