Singapore Petroleum Signs PSC with CNOOC

Singapore Petroleum Company Limited has through its wholly-owned subsidiary, SPC E&P (China) Pte. entered into a Production Sharing Contract with China National Offshore Oil Corporation for Block 26/18, subject to final governmental approvals. SPC will operate the Block with a 100% participating interest.

On the acquisition, Mr Koh Ban Heng, Chief Executive Officer, said, "We are very pleased to build an alliance with CNOOC, a major offshore oil and gas producer, for this foothold in the large China oil and gas market."

"SPC has steadily grown its presence in the regional exploration and production sector since 2000. Gaining entry into China will allow SPC to tap its vast market and further strengthen SPC’s exploration and production portfolio".

The Block covers an area of approximately 4,961 square kilometers and is located 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.

Under the PSC, SPC is committed to conduct seismic survey and exploration drilling. CNOOC has the right to participate in up to a participating interest of 51% in the PSC, upon a commercial discovery.

SPC E&P China was incorporated in Singapore with a paid-up capital of S$2 as a wholly-owned subsidiary of SPC E&P Private Limited, which is a wholly-owned subsidiary of SPC.

FINANCIAL IMPACT

The Group does not expect the above investments to have any material impact on the earnings per share and the net tangible asset per share of the SPC group of companies for the current financial year.

BACKGROUND

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. It is an associated company of Keppel Oil & Gas Services Pte Ltd, a wholly-owned subsidiary of Keppel Corporation Limited.

CNOOC is one of the major state-owned oil companies in China, as well as a major offshore oil and gas producer. From an upstream oil company exclusively engaged in oil and gas exploration, CNOOC has evolved into an integrated corporation through growth and developments.

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