China National Offshore Oil Corp. has elected to participate with 51% in the Phase I development of the Peng Lai 19-3 field in Block 11/05 in Bohai Bay, reducing foreign partner Phillips China Inc.'s share to 49%.
The development is still subject to regulatory approval that Phillips China expects in the first quarter 2001.
Phillips approved the expenditure for phase I of the project in July (OGJ Online, July 24, 2000). China issued the exploration contract for the block in 1994.
The discovery well, Peng Lai 1, was spudded in May 1999, and Phillips drilled six successful appraisal wells in the area.
Phase I of the Peng Lai 19-3 development will come from a wellhead platform and a floating production, storage, and offloading vessel. First oil is expected in the first quarter of 2002. Phillips expects 35,000-40,000 b/d of oil from the field.
The US-based Phillips is continuing feasibility planning and design for Phase II. It expects the second phase�to come on stream in 2005�to generate peak production of 120,000-150,000 b/d.
