Devon Energy starts oil production in South China Sea

Oct. 14, 2003
Devon Energy China Ltd., a unit of Devon Energy Corp., Oklahoma City, has begun production from Panyu oil fields in the South China Sea. Production volumes are expected to increase steadily during the next year as additional wells are completed, and the company expects a peak gross

By OGJ editors

HOUSTON, Oct. 14 -- Devon Energy China Ltd., a unit of Devon Energy Corp., Oklahoma City, has begun production from Panyu oil fields in the South China Sea. Production volumes are expected to increase steadily during the next year as additional wells are completed, and the company expects a peak gross production of 60,000 b/d of oil in third quarter 2004.

Panyu, lying in about 100 m of water, is on Block 15/34 in the Pearl River Mouth basin of the eastern South China Sea about 200 km from Hong Kong.

Oil is produced from two fixed platforms and is stored in a floating production, storage, and offloading vessel. First sales are expected in forth quarter of this year, with shipments to be offloaded into tankers for transportation to markets.

Devon, which operates the field, has a 24.5% working interest. Other partners are CNOOC Ltd. 51%, and Burlington Resources China Inc. 24.5%.

Devon drilled the discovery well at Panyu in 1998 and made a follow-up discovery in 1999.