Offshore staff
SINGAPORE -- Singapore Petroleum Co. Ltd. has expanded its presence in China with the acquisition of offshore producing oilfields and exploration interests in Bohai Bay.
Through its subsidiary SPC E&P (China) Pte. Ltd., SPC won a competitive bid for 100% of the shares of Sino-American Energy Corp, which owns the oil fields and exploration blocks. Sino-American is a subsidiary of Houston-based Ultra Petroleum Corp.
The share purchase agreement, signed in Houston on Sept. 26, 2007, is subject to certain pre-emption rights and other consents under the operating agreements. Upon completion, Bohai Bay will become SPC's largest producing asset.
The Bohai acquisition comprises two production-sharing contracts (PSC), containing six producing oilfields. With this acquisition, SPC will hold 18% interest in block 04/36 and 23% interest in block 05/36. The PSCs are the shallow water of Bohai Bay, 190 km (118 mi) west of Beijing and cover an area of approximately 3,080 sq km (1,189 sq mi). SPC says there is potential for further exploration in the blocks. The block 04/36 PSC expires in 2024, and the block 05/36 PSC expires in 2026.
Bohai Bay is SPC's second asset in China, following the recent acquisition of Pearl River Mouth basin acreage.
"The rationale for adding Bohai to our stable is two-pronged," says Koh Ban Heng, CEO. "One, it is in line with our long-term strategy to grow our business through upstream activities. The other is to tap the vast potential of China, both as a major oil and gas producing region, and as a key market."
9/27/2007
