By OGJ editors
HOUSTON, Sept. 28 -- Singapore Petroleum Co. Ltd. (SPC) has acquired several producing properties in the shallow waters of China's Bohai Bay through its $223 million acquisition of Sino-American Energy Corp., a unit of Ultra Petroleum Corp., Houston.
The properties being acquired comprise two production-sharing contracts containing six producing oil fields on Blocks 04/36 and 05/36 covering 3,080 sq km 190 km west of Beijing. These properties will become SPC's largest producing asset.
SPC's interests in the PSCs will be 18% in Block 04/36 and 23% in Block 05/36 with net interest in the six producing fields of 8.91% and 7.82% in the respective blocks.
SPC's share of the current Bohai Bay production will be 4,300 b/d of oil. "This acquisition will bring SPC's total current oil and gas production to over 11,000 boe/d, including Oyong and Kakap fields in Indonesia," said Tony Tan, SPC's senior vice-president, exploration and production.
There is potential for further exploration to be carried out on the blocks, contracts for which are to expire in 2024 and 2026, respectively.
The acquisition, with an effective date of July 1, will be funded through internal resources and bank loans. It is expected to be completed by the end of October, subject to certain preemption rights and other consents under the operating agreements.
With this sale, representing all of Ultra's interest in China, Ultra will focus on its legacy asset—Pinedale gas field, the second largest gas field in the US. The company said it still expects to deliver over 20% organic production growth in 2008-09.