LONDON, Mar. 2 -- Commercial gas production has begun at Changbei gas field in China, said Royal Dutch Shell PLC, the field's operator, on Mar. 1. The field is expected to plateau at 3 billion cu m/year in 2008 and deliver gas to Beijing, Tianjin, Shandong, and Hebei.
Shell will use long multilateral horizontal wells to achieve this production level because Changbei is a difficult reservoir.
PetroChina and Shell are jointly developing the field under a production-sharing contract, with Shell currently being the field development operator. The field is on the edge of the Maowusu desert in the Ordos basin of Shaanxi Province and Inner Mongolia Autonomous Region and is the largest onshore upstream cooperative development Shell has had in China.
Changbei development includes the construction of the central processing facilities, interfield pipelines, and a drilling program that is expected to involve about 50 horizontal and multilateral wells over 10 years.
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