China Beibu Gulf oil field projects approved

By OGJ editors
HOUSTON, Jan. 31 -- CNOOC Ltd. has internally approved the project investment and overall development plans for Weizhou 6-12 and Weizhou 12-8 West oil fields in Block 22/12 in Beibu Gulf in the South China Sea.

The plans will be submitted to China government authorities for formal approvals. Final investment decisions are expected by the end of February, and production is to start by the end of 2012.

Upon reaching a final investment decision, proved and probable reserves of 24 million bbl will be booked for the project.

Estimated gross development costs for the project have not significantly changed, said 19.6% interest holder Roc Oil (China) Co., Sydney. The project will use existing CNOOC-operated facilities, including water disposal wells, oil and gas transport facilities, and the Weizhou Island oil terminal.

A new CNOOC-operated integrated processing platform will host production from two unmanned platforms on WZ 6-12 and WZ 12-8 West fields and support production from other new CNOOC Ltd. fields. Eleven development wells will be drilled in 2012-13.

Provision has been made to drill several exploratory prospects from the two platforms to further test reservoir limits and identify nearfield prospects. The prospects are being matured, and success will potentially increase the development area’s commercial reserves and possibly the peak production rate.

WZ 12-8 East field, also in the approved development area, is undergoing feasibility studies. If commercially attractive, its development will constitute the second phase of an integrated development following completion of the current WZ 6-12 and WZ 12-8 West project.

Project participating interests besides Roc Oil are CNOOC 51%, Horizon Oil (Beibu) Ltd. 14.7%, Petsec Petroleum LLC 12.25%, and Oil Australia Pty. Ltd. (Majuko Corp.) 2.45%.