China
Shanghai Petroleum Corp. hopes to double production and reserves from Pinghu gas and condensate field in the East China Sea.
Production, now 28-35 MMcfd, is to grow to 71-78 MMcfd by 2003. Reserves are to double to 777 bcf by the same year, SPC told Interfax. Condensate reserves are 58-73 million bbl. Field interests are SPC 40% and Sinopec Star and China National Offshore Oil Corp. each 30%.
A gas pipeline hauls Pinghu gas to Shanghai. Gas consumption in Shanghai is expected to reach 134 bcf/year by 2005 and 247 bcf/year by 2010.
Of the gas used in 2000, 40% was for power generation, 30% for domestic, and 20% in the chemical sector. The city plans to build a 1,000-kw gas fired power plant.
Kazakhstan
Texaco's Kazakh affiliate plans to more than double oil production at North Buz- achi field in the Mangistau region this year.
Texaco hopes to average 3,900 b/d this year, compared with 1,420 b/d in 2000. First quarter production averaged 2,238 b/d versus 1,703 b/d in first quarter 2000. Recent output is 3,285-4,380 b/d, up from 1,460 b/d a year ago, general manager Wayne Welch told Interfax.
The company has drilled 27 of 30 planned assessment wells. If Texaco decides to proceed to full-scale development, production will average 32,850 b/d by the end of 2005, Welch said. Reserves are 1.6-2.3 billion bbl.
Peru
Pluspetrol Peru Corp., Buenos Aires, plans to hike oil production from Peruvian Block 1-AB by 25% over 3 years under a new development contract.
Pluspetrol plans to drill 14 development wells and rework 30 wells the next 3 years on the block, now making 38,000 b/d. It will also complete a 120 km pipeline by the end of June.
The new pact allows Pluspetrol to market oil production from the block and pay royalties, rather than deliver the oil to state Perupetro in exchange for a fee.
Pluspetrol will pay royalties of 8-20%, increasing progressively, on the new oil production. Production from existing wells is subject to a 35% royalty.
Perupetro extended the contract to 2015 from 2006. Pluspetrol has been seeking new terms since it acquired the block last year.
