Ivanhoe to develop three China blocks

A unit of Ivanhoe Energy Inc., Bakersfield, Calif., has signed agreements with PetroChina Co. Ltd. in Beijing, China, for joint venture development of reserves in the Sichuan Basin. The Zitongxi, Zitongdong, and Yudong blocks cover more than 2.2 million acres near Chongqing, about 932 miles southwest of Beijing.


By an OGJ Online Correspondent

HOUSTON, Feb. 13�A unit of Ivanhoe Energy Inc., Bakersfield, Calif., has signed agreements with PetroChina Co. Ltd. in Beijing, China, for joint venture development of reserves in the Sichuan Basin.

The memoranda of understanding give Sunwing Energy Ltd., Calgary, exclusive rights to develop and exploit oil and gas reserves on three blocks in the basin. The Zitongxi, Zitongdong, and Yudong blocks cover more than 2.2 million acres near Chongqing, about 932 miles southwest of Beijing. Chinese estimates place proven and probable reserves on the blocks at 20 tcf gas.

Sunwing will make feasibility studies and use independent engineering studies before finalizing production sharing contracts.

A total of 26 of 39 wells drilled on the blocks by a unit of PetroChina have been classified as producing gas wells. However, 30 of 38 hydrocarbon bearing structures identified to date have not yet been production tested.

Sunwing has been involved in production sharing contracts at several other Chinese fields since 1996.

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