FOREIGN FIRMS' DEALS PROGRESS IN CHINA
Foreign firms are making progress in Chinese exploration and development joint ventures.
Energy Development Corp. (EDC), Houston, signed a contract with China National Oil Development Corp. (Cnodc) for joint exploration and development in East China's Jiangxi Province.
The contract is only the second involving a mainland onshore basin since 1985, when Beijing opened 11 South China provinces to foreign companies for exploration joint ventures.
Cheng Shouli, president of Cnodc, said more than 10 foreign firms have contacted the company about exploring in South China's mainland provinces.
In other Chinese exploration and development action:
- New Zealand's Petrocorp, holder of the first mainland onshore joint exploration contract, has begun work on its project.
- Foreign companies have marked progress in exploration ventures in eastern China and the South China Sea.
- China National Petroleum Corp. (CNPC) and Alberta's provincial government have opened a jointly operated petroleum technology center in Beijing.
EDC CONTRACT
EDC's contract with Cnodc covers a 14,423 sq km area southwest of Boyang Lake in the Boyang basin.
The contract calls for EDC to conduct seismic surveys totaling 1,500 line km and drill four wildcats. The three phase program is to last 7 years.
EDC will provide all exploration funding, including funds for exploratory drilling. In the event of a commercial discovery, Cnodc will participate in development and production.
PETROCORP
Petrocorp, a unit of Fletcher Challenge Ltd., has begun its exploration program in Central China's Hunan province (OGJ, Dec. 24, 1990, p. 21).
The contract area covers 15,900 sq km, including Changsha City, Yueyang, Changde, and Yiyang prefectures. During the first 3 years of the program, Petrocorp will gather and process 1,250 line km of seismic data and drill two wildcats.
OTHER EXPLORATION
Also in East China, Japan National Oil Corp. (JNOC) and China's Ministry of Geology and Mineral Resources started a seismic survey targeting marine carbonates in southern Jiangsu Province.
The project covers a 3 year period of seismic surveys in a 10,000 sq km area near Changzhou.
JNOC has a similar seismic program under way in Northwest China's remote Tarim basin.
Meantime, Anadarko China Co. and Pecten Orient Co. have received approval for exploration in the Pearl River Mouth basin in the South China Sea (OGJ, Aug. 19, p. 30).
The companies last month signed contracts with China National Offshore Oil Corp. involving a production sharing agreement covering Block 28/28 and Block 27/10, formerly Block 27/06.
Previously, the pair had a geophysical contract-one limited to seismic surveys-covering Block 27/06. The new name stems from the new agreement and relinquishment of certain interests.
TRAINING CENTER
The China/Alberta Petroleum Training Centre's goal is to promote transfer of technology and strengthen trade between China and Alberta businesses.
The center will offer programs on heavy oil technology, sour gas production and processing, enhanced oil recovery, seismology, cold climate adaptations, and directional drilling. A horizontal drilling seminar is scheduled.
Canada provided a $4.43 million investment for the center, while China contributed two floors of the Shengli Hotel.
The center will provide CNPC and its units access to technical information and equipment available from Alberta and Alberta business people access to specific technical and equipment needs in Chinese oil fields.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.