China's CNOOC starts production from two oil fields offshore China

Dec 28, 2012 12:00 AM

China National Offshore Oil Corp. said Friday that is has started production from two projects in the South China Sea.

The Panyu 4-2/5-1 oil field "adjustment project" and Liuhua 4-1 oil field located in the Pearl River Mouth Basin have successfully commenced production, CNOOC said in a statement. It did not provide any production rates for both projects.

CNOOC started redevelopment of existing offshore fields in the last two years to extend their production life and output rates, calling them adjustment projects.

The Panyu 4-2/5-1 oil field lies in average water depth of about 100 meters. "The adjustment project was designed to share the existing facilities to develop Panyu 4-2/5-1 oil field more effectively," CNOOC said, adding that it will hit peak production in 2015. CNOOC has 75.5% of the project and is operator, partnering ConocoPhillips with the remaining 24.5%.

Conoco previously said the Panyu project, comprising the Panyu 4-2, 5-1 and 11-6 fields, produced 9,720 b/d of net crude last year, suggesting gross output was about 39,700 b/d.

Conoco said in March that peak production from the project is expected at around 11,000 b/d, net to the company, following further development and expansion.

Liuhua 4-1, the second project, is wholly owned by CNOOC and lies in water depth of about 268 meters. CNOOC said it built a new subsea production system while sharing the surrounding facilities for overall development. It is expected to hit peak production next year, CNOOC said.

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