China: Primeline, CNOOC expand East China Sea block

By OGJ editors

Primeline Energy Holdings Inc. has signed a petroleum contract with China National Offshore Oil Corp. covering Block 33/07 in the East China Sea.

The contract replaces the previous contract on Block 25/34, which covered the 84.7 sq km development and production area of LS36-1 gas field under which CNOOC Ltd. was operator with 51% interest and PEH and Primeline Petroleum Corp. held 36.75% and 12.25%, respectively.

Block 33/07 covers 1.45 million acres enclosing Block 25/34, and the contractor’s interest is shared 75%-25% by PEH and PPC. Another subsidiary, Primeline Energy Operations International Ltd., is operator of Block 33/07. PEOIL is responsible for 100% of exploration costs, and CNOOC has the right to participate, up to 51%, in any commercial development.

The new contract has a 7-year exploration period divided into three exploration phases of 3, 2, and 2 years, each with a minimum work commitment. The firm commitment in the first phase is for two exploratory wells and 600 sq km of 3D seismic. Any discoveries in the new contract area have the right to use the production facilities being built for LS36-1 gas field. Block 33/07 and Block 25/34 fiscal terms are identical.

Block 33/07 covers the majority of the Lishui basin where LS36-1 gas field is to begin producing in 2013. Primeline has 737 sq km of 3D seismic data in the block within which a number of potential prospects near LS36-1 have been mapped. Primeline also has extensive 2D seismic coverage over the rest of the block and has identified a number of exploration leads in this area.

Related Articles

Financial questions seen for US shale gas, tight-oil plays

03/25/2014 Financial problems of operators in US shale gas and tight oil plays might hold production growth below current expectations, according to the autho...

BOEM: Firms bid $850 million in high bids in central gulf lease sale

03/24/2014 The US Bureau of Ocean Energy Management reported that its central Gulf of Mexico Lease Sale 231 received 380 bids from 50 companies on 326 blocks,...

Statoil makes gas find on flank of Visund field in North Sea

03/24/2014 Statoil Petroleum AS has made a natural gas discovery on the northeast flank of Visund field in the northern part of the North Sea, the Norwegian P...

CNOOC makes natural gas discovery in Bohai Bay

03/24/2014 CNOOC Ltd. has made what it describes as a “mid-sized” natural gas discovery in the Bozhong 22-1 structure in the south-central region of Bohai Bay.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected