CNOOC takes 100% control of Lufeng 13-1 oil field

CNOOC has taken over 100% operating rights in Lufeng 13-1 oil field in the South China Sea, assuming a 75% stake from its long-time Japanese partners after expiration of their PSC.

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Mar. 1 -- CNOOC Ltd. has taken over 100% operating rights in Lufeng 13-1 oil field in the South China Sea, assuming a 75% stake from its long-time Japanese partners after expiration of their production-sharing contract.

The field, located on Block 16/06 in the Pearl River Mouth basin, was being jointly developed by CNOOC and JHN Oil Operating Co., a consortium comprised of Japan Petroleum Exploration Co. Ltd. unit Japex Nanhai 30%; Mitsui and Co. Ltd. unit New Huainan Oil Development Corp. 30%; and Nippon Mining Co. Ltd. unit, NMC Pearl River Mouth Oil Development Co. Ltd., 15%.

CNOOC and JHN Oil signed a product-sharing contract for Lufeng 13-1 in 1985, and the oilfield, which now produces 12,000 b/d, was put into commercial operation in February 1994.

Since then, Lufeng 13-1 has produced 70 million bbl, and analysts say that future output from the field, which is located some 240 km southeast of Hong Kong, could be used to supply nearby urban centers on China's southern seaboard.

Contact Eric Watkins at hippalus@yahoo.com.

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