Kuwait Foreign Petroleum Exploration Company (KUFPEC), Shell and South China Resources (SCR) have signed on Saturday a contract with the Philippine Energy Department on offshore oil and gas explorations in northeastern Palawan, Philippine.

Philippine Secretary of Energy Raphael Lotilla signed the contract on behalf of the Philippines, while head of operations Abdallah Baroon represented KUFPEC, reported the official Kuwait News Agency (KUNA).

KUFPEC announced that the contract covered an area that exceeds 10 million square km, 30 percent of which is assigned to KUFPEC, 55 percent to Shell and the other 15 percent to SCR, according to the report.

The contract includes exploration and drilling of three oil wells within the next seven years and if oil or natural gas is discovered there, the production contract will be extended for nearly 25 years, said KUNA, which did not reveal the exact value of the contract.

Source: Xinhua