Area Drilling

July 24, 2000
Shell Exploration (China) Ltd. will drill and test two wells on the Changbei block in the Ordos basin under an agreement with PetroChina Co.'s subsidiary Changqing Petroleum Exploration Bureau.

China

Shell Exploration (China) Ltd. will drill and test two wells on the Changbei block in the Ordos basin under an agreement with PetroChina Co.'s subsidiary Changqing Petroleum Exploration Bureau.

Changqing, which operates in northwestern China, plans vertical and horizontal sections in both wells to help evaluate commerciality of a field. The $4 million project, to start in July, is part of Shell and PetroChina's larger program involving production of gas on the Changbei block, laying a pipeline, and development of gas markets in northern and eastern China. Overall project cost is $3 billion.

China National Petroleum Corp., parent of PetroChina, and Shell signed a contract last September to develop the integrated Changbei project. PetroChina sees this project as an integrated part of China's ambitious plan to increase gas utilization this decade. Shell is targeting 2004 for the project start-up.

Greenland

A Phillips Petroleum Co. group spudded the Qulleq-1 wildcat in mid-July on the Fylla license 150 km west of Nuuk.

Projected TD is about 3,000 m in 1,156 m of water with the West Navion drillship on site. Interests are Statoil and Phillips each 38.25%, Dansk Olie og Naturgas 8.5%, and Nunaoil 15%.