(MENAFN - Kuwait News Agency (KUNA)) Kuwait Foreign Petroleum Exploration Company k.s.c (KUFPEC), a subsidiary of Kuwait Petroleum Corporation, today announces that it has agreed to acquire an additional 34.3 percent interest in the Yacheng gas field in the South China Sea from BP; the transaction is subject to regulatory, CNOOC and third party approvals.
Commenting on the transaction, KUFPEC's Chairman and Managing Director, Mr. Nizar Al-Adsani stated that "KUFPEC is pleased to have the opportunity to grow a material business through alignment with valued partners such as CNOOC. KUFPEC is committed to working in China to expand its oil and gas exploration and development operation in this important emerging market."
The Yacheng 13-1 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 kilometres south of Hainan Island, in the South China Sea. KUFPEC has been a participant in Yacheng 13-1 since 1990. Commercial production at Yacheng started in 1996. CNOOC has been the operator since 1 January 2004. The field currently supplies natural gas for power generation to Castle Peak Company Limited in Hong Kong via a 780km pipeline. Additional natural gas, condensate and LPG are sold to customers on Hainan Island.
Following completion, the Yacheng partnership will consist of KUFPEC (49 percent) and CNOOC (51 percent).
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 13 countries with 52 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 till the year 2030.