China's offshore oil production continues to increase,

ACT Operators Group started up Huizhou 32-2 and 32-3 oil fields in the Pearl River Mouth basin of the South China Sea, boosting its total production off China to more than 100,000 b/d.

First Huizhou oil flowed in mid-June, 5 months ahead of schedule and 10% below budget, In addition, advanced exploration and drilling techniques, including watersheds in horizontal displacement and extended reach drilling, enabled ACT to increase reserves estimates by about 50% from the original development plan.

The two fields, on Contract Area 16/08 (see map, OGJ, Jan. 21, 1991, P. 18), at first will produce about 50,000 b/d. Production is to peak at about 60,000 b/d late this year.

ACT consists of Agip (Overseas) Ltd., Chevron Overseas Petroleum Ltd., and Texaco China BY, each with a 16 1/3% interest. State owned China National Offshore Oil Corp. holds the remaining 51% in the fields.

The same interests hold for ACT's two other commercial oil fields in the South China Sea, Huizhou 21-1 and Huizhou 26-1, where combined production averages 60,000 b/d.

The Huizhou 32 fields' crude is 3039 gravity produced from sandstones at 6,500-8,000 ft through two platforms in 375 ft of water. The fields, which ACT found in 1991, produce through a system serving Huizhou 21 and 26.

China's offshore oil fields produced an average 146,000 b/d in the first 5 months of 1995.