SPC Completes US$223 Million Acquisition of China Oilfields

Singapore Petroleum Company Limited (SPC) has completed its U.S. $223million (about S$334.5 million) Bohai Bay acquisition (Bohai).

Bohai is now SPC’s largest producing asset. It is also its second asset in China and its eighth exploration and production asset.

Bohai aligns with SPC’s long-term strategy to grow its business through upstream activities, and to tap the vast potential of China, both as a major oil and gas producing region, and as a key market.

SPC’s share of the current Bohai production is 4,300 bo/d, bringing its total current oil and gas production to over 11,000 boe/d.

The Bohai acquisition comprises two Production Sharing Contracts, which have six producing oilfields. SPC's interests in the PSCs are 18% in Block 04/36 and 23% in Block 05/36 (respectively 8.91% and 7.82% net interest in the six producing fields in these two blocks).

The PSCs are located in the shallow waters of Bohai Bay, 190 kilometers east of Beijing and cover an area of approximately 3,080 square kilometers. There is potential for further exploration to be carried out in the blocks, which will expire in 2024 and 2026 respectively.