Texaco Bohai Bay well encounters oil

Texaco Inc. has made an oil discovery off northeastern China in Bohai Bay Contract Area 11/19, 90 miles south of Tanggu near the Port of Tianjin. The company said the Bozhong 25-1-8 discovery well was drilled in 57 ft of water to 7,134 ft TD and encountered 115 ft of net pay between 5,500 and 5,700 ft.


Texaco Inc. has made an oil discovery off northeastern China in Bohai Bay Contract Area 11/19, 90 miles south of Tanggu near the Port of Tianjin. The company said the Bozhong 25-1-8 discovery well was drilled in 57 ft of water to 7,134 ft TD and encountered 115 ft of net pay between 5,500 and 5,700 ft.

Texaco said the well results indicate the presence of high-quality reservoir sands in the Tertiary Minghuazhen. Texaco holds a 100% contractor interest in the block, which covers 787,384 acres.

Texaco called the well results "encouraging" and said they will be incorporated into further geological and engineering studies to determine Bozhong's commercial potential.

The Bozhong discovery, if deemed commercial, will enable Texaco to expand its existing business interests in Bohai Bay, said Robert A. Solberg, president of Texaco Worldwide Upstream Commercial Development. "Bozhong is the result of, and would not have been possible without, the strong cooperative effort between Texaco and the China National Offshore Oil Corp. (CNOOC) group of companies."

Texaco hopes to expand the joint developments of oil fields off China with CNOOC.

Texaco currently shares in 110,000 b/d of production from five offshore fields in the South China Sea operated by the CACT Operators Group, which comprises CNOOC, Agip China BV, Chevron Overseas Petroleum Inc., and Texaco China BV. The CACT operation is the largest foreign-invested offshore field production in China.

Texaco also is participating in the joint development of the CNOOC-operated Qinhuangdao 32-6 field 50 miles north of the Bozhong discovery well in Bohai Bay.

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