ConocoPhillips has two more oil discoveries in China's Bohai Bay

By OGJ editors

HOUSTON, June 18 -- Phillips China Inc., a unit of ConocoPhillips, announced two additional discoveries in Bozhong Block 11/05 in Bohai Bay off China, making a total of seven discoveries that Phillips China has made on the block.

In January, ConocoPhillips drilled the PL 19-9-1 exploration well 2 miles east of PL 19-3 field. The well found 31 m of net hydrocarbon pay in Lower Minghuazhen and Guantao Sandstone reservoirs.

The PL 13-1-1, 18 miles north of the PL 19-3 field, was completed in March 2003. The well encountered 40 m of net hydrocarbon pay in Lower Minghuazhen and Guantao Sandstone reservoirs. The company plans to drill appraisal wells.

Phase I of the PL 19-3 development began production in December 2002, and the field produces 30,000 b/d gross. Phase I facilities include a 24-slot wellhead platform and a floating production, storage, and offloading facility. Phase II development plans are under way.

ConocoPhillips and CNOOC signed a petroleum contract in December 1994 granting ConocoPhillips the right to explore and operate Block 11/05. The company has 100% interest in all fields discovered to date, with the exception of PL 19-3 development, in which the company has 49% interest.

CNOOC elected to participate in the PL 19-3 Phase I development with 51% interest and has the right to acquire up to 51% interest in any development in the block.