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KUFPEC Acquires more in Yacheng12 Dec 2013
KUFPEC Acquires Additional 15.3% Interest in the Yacheng 13-1 Natural Gas Field Offshore China from BP
Kuwait Foreign Petroleum Exploration Company k.s.c. (KUFPEC), a subsidiary of Kuwait Petroleum Corporation, today announces that its subsidiary, KUFPEC (China) Inc., has completed the transaction to acquire an additional 15.3% interest in the Yacheng 13-1 natural gas field in the South China Sea from BP China Exploration and Production Company for approximately US$137.4 million.
Commenting on the transaction, KUFPEC’s Chief Executive Officer, Sh. Nawaf S. Al-Sabah, stated that “this transaction is one step in KUFPEC’s strategy to further expand its oil and gas exploration and production operations in China and around the world. KUFPEC welcomes the opportunity to continue working closely with CNOOC, a reputable operator with whom we have a long-standing excellent relationship.”
The Yacheng 13-1 natural gas field was discovered in 1983 and is the largest offshore natural gas producing field in China. The field is located in about 90 metres water depth and is located approximately 100 km south of Hainan Island, in the South China Sea.
KUFPEC has been a participant in Yacheng 13-1 natural gas field since 1990. Commercial production at Yacheng 13-1 natural gas field started in 1996. CNOOC China Limited has been the operator since 1 January 2004.
The field currently supplies natural gas for power generation to Castle Peak Power Company Limited in Hong Kong via a 780 km pipeline. Additional natural gas, condensate and LPG are sold to customers on Hainan Island.
As the prior iteration of this transaction was partially preempted by CNOOC China Limited, post-completion the Yacheng 13-1 natural gas field interests are held by KUFPEC (China) Inc. (30%) and CNOOC China Limited (70%).
KUFPEC is an international oil company engaged in the exploration, development and production of crude oil and natural gas outside the state of Kuwait. KUFPEC is active in Asia, Africa, the Middle East, UK and Australia.
KUFPEC is currently active in 14 countries with 60 projects in the international upstream sector. Also, KUFPEC is currently working towards achieving its strategy plans aiming to increase its production to 200,000 BOEPD with reserves of 650 MMBOE by year 2020 and to maintain it until year 2030.