By the OGJ Online Staff
LONDON, Dec. 14 -- Phillips China Inc. will begin producing China's largest offshore oil field, in Bohai Bay off the country's northeastern coast, in August at a rate of 40,000 b/d.
Peng Lai 19-3 field eventually will produce 120,000-150,000 b/d. Phillips China is operator with 49%. The rest is held by CNOOC Ltd., a unit of the Chinese state oil company China National Offshore Oil Corp. That state company has a right to 51% of any offshore developments (OGJ Online, Feb. 21, 2001).
Phillips China has invested $2 billion at Peng Lai field, which analysts say may hold China's second-largest reserves behind the onshore Daqing field, controlled by PetroChina Co.
Plans for a pipeline network connecting oil fields in Bohai Bay and linking them to shore have been shelved.
Earlier, CNOOC said it may boost its oil and gas production by as much as 32% next year because of increased spending that resulted in new discoveries. CNOOC may increase output to 125 MMboe, from an estimated 95 MMboe in 2001.