Breaking the Arctic ice - Keppel Corporation

18 Business
Steering a steady course
From growing its exploration
and production (E&P)
portfolio to setting up a new
office branch in China,
Singapore Petroleum
Company (SPC) continues to
steer a steady course to
enhance shareholder value
and ensure long-term
growth.
GROWING E&P ASSETS
The company secures its first
onshore block in Indonesia in
line with strategy to grow its
E&P business.
SPC has through its whollyowned
subsidiary, SPC E&P
Upstream entered into
a Petroleum Production
Sharing Contract (PSC) with
Keppelite I November 2008
Badan Pelaksana Kegiatan
Usaha Hulu Minyak Dan
Gas Bumi (BPMIGAS), an
Indonesian state-owned
legal entity, to explore the
Mahakam Hilir Block (Block).
The PSC is subject to final
government approvals.
SPC will be the Operator of
the Block and is committed
to conduct seismic survey
and exploration drilling
under the PSC. The Block,
covering approximately
344.14 sq km, is located
onshore Kutai Basin in the
East Kalimantan Province,
which is situated
approximately one kilometre
south of Samarinda town.
SPC will be the Operator of the Mahakam Hilir Block in East Kalimantan, Indonesia
The Kutai Basin is one of the
largest and most important
oil and gas producing basins
in Indonesia.
SPC CEO, Mr Koh Ban Heng
said, “Our investment is
in line with SPC’s plan to
grow its E&P business, and
participate in the entire oil
and gas value chain. We are
pleased to expand our E&P
presence in Indonesia with
the operatorship of SPC’s first
onshore block.
“This integration of SPC’s
businesses will diversify SPC’s
earnings in the long-term
and in many ways, validates
our E&P growth.”
NEW UPSTREAM
BRANCH OFFICE
In China, SPC has officially
opened its SPC E&P (China)
Pte. Ltd., Shekou branch
office. The branch office is
established to operate and
manage SPC’s upstream
assets in China.
SPC holds interests in three
acreages in China, namely
Block 26/18 in the Pearl River
Mouth Basin (as operator),
and Blocks 04/36 and 05/36
in Bohai Bay. SPC’s 100%
participating interest in Block
26/18 is the company’s first
operatorship since venturing
into the E&P sector
in 2000. Reinforcing this
portfolio is SPC’s oil
production of 4,300 barrels
per day from its Bohai Bay
assets. Blocks 04/36 and
05/36 are currently SPC’s
largest producing asset.
Mr Koh said, “Our presence
in Shekou will strengthen our
alliance with strategic
partners in China. This is inline
with SPC’s long-term
strategy to grow its business
through E&P activities and
tap the vast oil and gas
potential of China”.
SPC’s E&P department is
headed by VP (E&P) Mr Brian
Boslaugh, a geophysicist by
training with almost 30 years
experience in oil and gas
exploration, appraisal and
project management.