MELBOURNE, Feb. 27 -- Roc Oil Co., Sydney, is preparing to start a new development stage for Zhao Dong oil fields in the Bohai Gulf off China.
The company, operator of the Zhao Dong joint venture, will begin a 5-year program of drilling and construction valued at more than $500 million. Some 120 development wells will be drilled between April this year and 2011.
Constraints imposed in 2006 by Chinese authorities on production from existing facilities have been removed, Roc Oil said. This paves the way for a forecast 2007 production of about 9 million bbl (25,000 b/d) from Zhao Dong C and D fields.
In addition, the government has approved plans for incremental field development that includes installation of a second drilling platform and a second fluid processing and storage facility placed adjacent to the existing platforms.
It also includes development of C4 oil field, with a number of wells to be drilled from two conductor pods into what is termed an untouched extended reach area to the northeast of C field.
A third pod will be installed for service as a pipeline terminal which will be tied back to the main Zhao Dong platforms via a 4.5-km subsea pipeline connection.
The incremental development plan will include both production and water injection wells. First oil from the initial phase of the program will come on stream in yearend 2008.
Roc Oil has a 24.5% interest in Zhao Dong block. Petrochina has 51%, while state-owned Sinochem Corp. has picked up 24.5% with the purchase of XCL-China LLC whose sole asset was its interest in Zhao Dong.