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AGREEMENT SIGNED FOR SALE OF SOUTH CHINA SEA GAS; PROJECT IS CHINA'S LARGEST OFFSHORE ENERGY DEVELOPMENT

 AGREEMENT SIGNED FOR SALE OF SOUTH CHINA SEA GAS;
 PROJECT IS CHINA'S LARGEST OFFSHORE ENERGY DEVELOPMENT
 BEIJING, March 12 /PRNewswire/ -- An agreement in principle was signed here today for the sale of South China Sea natural gas to an electricity generating company owned by China Light & Power Co. and Exxon Energy Ltd. for electric power generation in Hong Kong.
 The $1.2 billion project will be China's largest offshore energy development.
 Today's signatories included ARCO China Inc., a subsidiary of Los Angeles-based ARCO and operator of the Yacheng 13-1 Gas Field southwest of Hainan Island; its joint venture partner KUFPEC (China) Inc., a subsidiary of Kuwait Foreign Petroleum Exploration Co. (KUFPEC); and the China National Offshore Oil Corp. (CNOOC).
 Attending the signing ceremony were Chinese Premier Li Peng, ARCO Chairman and Chief Executive Officer Lodwrick M. Cook and KUFPEC Chairman and Managing Director Faisal Al Kazmawi.
 Discovered by ARCO in 1983 the Yacheng Field has recoverable gas reserves estimated at 3 trillion cubic feet. Production is expected to begin in January 1996 and reach a peak of 330 million cubic feet per day. Approximately 280 million cubic feet per day will be delivered to Hong Kong via a 475-mile sub-sea pipeline and 50 million cubic feet per day to Hainan Island via a 60-mile sub-sea pipeline. Two offshore production and processing platforms will also be built.
 CNOOC holds a 51 percent interest in the project, ARCO a 34.3 percent interest and KUFPEC a 14.7 percent interest.
 "ARCO and its partners are extremely pleased to have reached this milestone in the development of the Yacheng Field," said Cook. "The gas is much needed in Hong Kong and will help with the economic development of Hainan Island."
 A definitive sales agreement is expected to be signed by all parties in mid-year.
 -0- 3/12/92
 /CONTACT: Albert Greenstein of ARCO, 213-486-3384/
 (ARC) CO: ARCO; ARCO China Inc.; China Light & Power Co.; Exxon Energy Ltd. ST: California IN: OIL SU: CON


DM-EH -- LA001 -- 7638 03/12/92 09:01 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Mar 12, 1992
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