Singapore Petroleum & China National Offshore Oil Corporation Alliance

Singapore Petroleum Company (SPC) has entered into a Production Sharing Contract (PSC) with China National Offshore Oil Corporation (CNOOC) for Block 26/18. SPC will operate the Block with a 100% participating interest.

The Block covers an area of roughly 4,961 square kilometers and is situated in the Pearl River Mouth Basin, South China Sea. The Block is approximately 150 kilometers from shore in water depths of between 85 and 200 meters.

A spokesperson for SPC said that they are pleased with the alliance and it will provide a firm base for progress in the large China oil and gas market. SPC has gradually increased its presence in the regional exploration and production sector since the start of the millennium. Achieving entry into China will allow SPC to tap its huge market and enhance SPC’s exploration and production portfolio.

SPC is a regional oil and gas company with interest in oil and gas exploration and production, refining, terminalling and distribution, marketing and trading of crude and refined petroleum products.

CNOOC is one of the major state-owned oil companies in China, as well as a major offshore oil and gas producer.

The contract is subject to final governmental approvals.