China's Bohai Oil Co. (BOC) last month started up its first exclusively self-financed offshore petroleum development.
jinzhou 20-2 oil and gas/condensate field went on stream in the Liaodong Bay area of the Bohai Sea with production of 53 MMcfd of gas and 3,019 b/d of condensate (OGJ, Aug. 17, p. 46).
The field was discovered in December 1984 and approved for development in January 1989. It covers 50 sq km over three geological features Chinese geologists call "bulges." Jinzhou producing horizons are at average depths of 2,1402,372 m with pay zones 6.8-60 m thick. The gas reservoir covers 14.4 sq km with 478 bcf in place and 335 bcf recoverable. Original liquids in place are 24 million bbl of condensate and 33 million bbl of oil, with recoverable reserves estimated at 8.5 million bbl and 4 million bbl, respectively.
DEVELOPMENT PLANS
BOC, a unit of state owned China National Offshore Oil Corp., plans to drill 14 wells to develop the field from four platforms under a three phase program.
The South Bulge, North Middle Bulge, and South Middle Bulge platforms each will have four wells, and North Bulge platform two wells.
In the first phase, BOC installed the North Middle Bulge and South Bulge platforms and a third platform for accommodations and power that features a 3,800 kw turbine generator set and glycol generation/recycling unit. BOC laid a subsea power cable and 10.2 km pipeline linking the South Bulge platform with the accommodation platform.
This phase also entailed laying a subsea 12 in., 48.6 km oil and gas pipeline from the North Middle Bulge platform to the onshore Xingcheng gas processing plant. It is China's longest offshore pipeline.
During a second phase in 199395, plans call for installation of the South Middle Bulge platform and a compressor platform. The third phase involves installing the North Bulge platform during 2002-2004 to take up the slack from depleted middle and south bulges of the field.
DOWNSTREAM, FINANCIALS
The 53 MMcfd capacity Xingcheng gas processing plant can produce 42 MMcfd of methane to be used as feedstock for the Jinxi petrochemical complex.
Jinxi is expected to produce 520,000 tons/Year of ammonia and 320,000 tons/year of urea.
The Xingcheng plant also produces about 10,000 b/d of butane, propane, and other natural gas liquids. The gas processing plant cost about $45 million.
BOC has earmarked 2.4 billion yuan ($500 million) for full Jinzhou 20-2 development, including 700 million yuan ($130 million) for the first phase alone.
BOC estimates revenues from the project at 200 million yuan ($40 million)/year.
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