KUFPEC Signs PSCs for Three South China Sea Oil, Gas Blocks

Kuwait Foreign Petroleum Exploration Company (KUFPEC) on Wednesday said its subsidiary KUFPEC China has signed three Production Sharing Contracts (PSCs) covering three new exploration blocks located in the South China Sea adjacent to the Yacheng pipeline, Kuwait News Agency (KUNA) reported.

In an exclusive statement to KUNA, KUFPEC pointed out that in the event of a commercial discovery in any of the new exploration blocks, KUFPEC China will have a 30 percent working interest in the development of such a discovery.

The remaining working interest will be held by the operator, a subsidiary of China National Offshore Oil Corporation (CNOOC), KUFPEC added.

Production from the Yacheng offshore gas field has been supplying natural gas for power generation to Hong Kong via a 780 km pipeline since 1996, KUNA said.