By OGJ editors
HOUSTON, Jan. 3 -- Phillips China Inc. (PCI), a subsidiary of ConocoPhillips, and China National Offshore Oil Corp. Ltd. (CNOOC) have begun first production from Peng Lai 19-3 field in China's Bohai Bay. Phillips China is operator with 49%, and CNOOC holds 51%.
PCI has invested $2 billion at Peng Lai field, which analysts say may hold China's second-largest reserves behind the PetroChina Co.'s onshore Daqing field (OGJ Online, Dec. 14, 2001). Peng Lai 19-3 eventually is expected to produce 120,000-150,000 b/d.
PCI drilled the PL 19-3-1 discovery well in May 1999, and it was followed by six successful appraisal wells. Phase I development will utilize a single, 24-slot wellhead platform and a floating production, storage, and offloading vessel with expected daily gross production rates of 35,000-40,000 b/d of oil.
"This is a significant achievement for our companies to have production from this large oil field (almost) 3 years after it was discovered," said Roy Lyons, PCI president.
The two companies in December 1994 had signed a contract granting ConocoPhillips the right to explore Block 11/05, a 2.3 million-acre area located in Bohai Bay.
"This demonstrates the continuous cooperation of CNOOC and ConocoPhillips to develop China's energy resources," Lyons said.