Phillips' board approves development plan and makes discoveries in Bohai Bay

Jul 20, 2000 02:00 AM

The board of directors of Phillips Petroleum has approved expenditure for the first development phase of the company's Peng Lai (PL) 19-3 field in Block 11/05 in China's Bohai Bay. Phillips also has made two new oil discoveries on the block, bringing its total discoveries there to six.
"With six discoveries and several large additional prospects identified, we're extremely optimistic about the potential of this block," said Bill Berry, vice president of the Eurasia division of exploration and production. "Our plans call for production from the first phase of our PL 19-3 development program to begin in the first quarter of 2002 at an estimated gross rate of 35,000 to 40,000 bpd of oil. In order to fully integrate the knowledge gained from the reservoir performance in Phase I, we plan to start production from Phase II in late 2004 or 2005. We are quite pleased with the results to date from this block and fully expect it to become one of our key production areas."

The company made two new discoveries on Block 11/05 this spring. The PL 9-1-1 well was drilled on a large structure, approximately six miles in length, located in the north-east portion of Block 11/05, approximately 25 miles north-north-east of the PL 19-3 field. The second discovery, PL 25-6-1, was made on a separate anticline structure three miles east of the PL 19-3 field. Both discoveries are in 75 feet of water. A third wildcat well, the PL 25-2-1, located approximately 13 miles south of the PL 19-3-1 discovery well, was a dry hole.
The PL 9-1-1 discovery well reached a total depth of 5,016 feet on April 15, encountering a net pay interval of 62 feet in the Guantao formation sandstones and a gross pay of 610 feet in pre-Tertiary granite wash. Extensive formation pressure data was collected in the well, confirming the presence of a thick hydrocarbon column. Gravity of the oil ranged from 11 to 17 degrees API.

The PL 25-6-1 discovery well was drilled immediately following the PL 9-1-1 discovery well and reached a total depth of 7,731 feet on May 31. This well encountered 308 feet of net pay in the Guantao formation. Extensive wireline formation pressure data and samples were collected in the well. Drill stem testing was deferred to a future appraisal well. Oil gravity ranged from 16 to 19 degrees API.
The Nanhai-1 drilling rig was released June 12. Immediate plans are to evaluate the data from these wells prior to year end. The fourth exploration well planned for this year will become part of the company's next drilling program, which is planned for later this year or early next year. Commercialisation studies of these discoveries will be jointly initiated with CNOOC.
Phillips acquired the right to explore Block 11/05 in 1994 when it signed a petroleum contract with CNOOC. Phillips has a 100 % undivided working interest in the 2.3 mm-acre block. CNOOC has the right to acquire up to a 51 % interest in any development in the block.

Phillips is an integrated world-wide petroleum company engaged in oil and gas exploration and production world-wide; gas gathering, processing and marketing in the United States; refining, marketing and transportation operations primarily in the United States; chemicals and plastics manufacturing and sales around the globe; and technology development. Founded in Bartlesville, Oklahoma in 1917, the company has approximately 14,800 employees, $ 20 bn of assets and estimated annual revenues of $ 18 bn for 2000.

Source: Business Wire via Newspage
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