01-12-08 PetroChina has started developing an offshore block in Bohai Bay with an output target of 3 mm tpy or 60,247 bpd, parent company China National Petroleum Corp. said.
The Yuedong block, located in shallow water near Liaoning province, has rich reserves of heavy oil, CNPC said. Yuedong is part of the Liaohe field, China's largest heavy oil field, with annual output at 12 mm tpy or 240,986 bpd.

As an aging field, Liaohe faces depletion of reserves and needs Yuedong as a replacement. But CNPC said that development of Yuedong is highly risky and expensive due to active tides and a long icing period in the block.
PetroChina has formulated an overall development plan for the block, including construction of four artificial islands, an oil pipeline and one land-based processing station, it said, adding it will start trial operation of six wells in 2009.