KUFPEC Buys BP’s Share in South China Sea Field for $137M

Kuwait Petroleum Corporation has through its subsidiary KUFPEC (China) Inc. recently completed the transaction to acquire an additional 15.3% interest in the Yacheng 13-1 natural gas field in the South China Sea from BP for approximately US$137.4 million.

The Yacheng 13-1 natural gas 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, approximately 100 km south of Hainan Island, in the South China Sea.

KUFPEC has been a participant in Yacheng 13-1 natural gas field since 1990. Commercial production at Yacheng 13-1 natural gas field started in 1996. CNOOC China Limited has been the operator since 1 January 2004.

The field currently supplies natural gas for power generation to Castle Peak Power Company Limited in Hong Kong via a 780 km pipeline. Additional natural gas, condensate and LPG are sold to customers on Hainan Island.

The Yacheng 13-1 natural gas field interests are now held by KUFPEC (China) Inc. (30%) and CNOOC China Limited (70%).