Rick Wilkinson
OGJ Correspondent
MELBOURNE, Jan. 30 -- The Australian joint venture led by Sydney-based Roc Oil Co. Ltd. is moving towards commercial development of the Wei oil fields in the Beibu Gulf off China.
Roc Oil has completed an appraisal report for the fields (Wei 6-12 South and Wei 6-12), which indicates total oil reserves of 19-27 million bbl. About 80% of the oil is in Wei 6-12 South.
The JV has submitted the report to Chinese authorities with the intention of moving to a formal front-end engineering and design (FEED) stage in March. This would lead to a final investment decision during second half 2007.
To fast-track the project, some FEED work has already started. On this timetable the fields could be brought on stream by 2009 at an initial production rate of 10,000-15,000 b/d.
The appraisal report is confined to the two Wei fields and does not include the undrilled potential in five mapped prospects within 4 km or to four known accumulations in the southern part of the permit.
Design of the Wei production facilities will allow for future expansion to accommodate potential development of the four southern discoveries.
Block 22/12 interest holders are Roc Oil 40%, Horizon Oil Ltd. 30%, Petsec Energy Ltd. 25%, and First Australian Resources Ltd. 5%.
