AMOCO-CNOOC MAY DEVELOP OIL FIELD OFF CHINA

Amoco Orient Petroleum Co. and China National Offshore Oil Corp. (Cnooc) have signed a supplemental agreement covering possible development of Liuhua 11-1 oil field off China. Amoco found the technologically challenging field in Contract Area 29/04 early in 1987. Site is in the Pearl River Mouth basin of the South China Sea, about 150 miles southeast of Hong Kong in 1,000 ft of water. Engineering studies will begin shortly.

Feb. 4, 1991

2 min read

Amoco Orient Petroleum Co. and China National Offshore Oil Corp. (Cnooc) have signed a supplemental agreement covering possible development of Liuhua 11-1 oil field off China.

Amoco found the technologically challenging field in Contract Area 29/04 early in 1987.

Site is in the Pearl River Mouth basin of the South China Sea, about 150 miles southeast of Hong Kong in 1,000 ft of water.

Engineering studies will begin shortly.

If development proceeds, Cnooc will have a 51% working interest and Amoco a 49% working interest in the joint venture. Production of about 50,000 b/d of oil could begin early in 1995.

Richard M. Morrow, chairman and chief executive officer of Amoco Orient parent Amoco Corp., called signing of the supplemental agreement "a significant occasion" in a process that began with the signing of a petroleum exploration agreement 5 years ago.

"Since discovering the field, Amoco has conducted extensive evaluations in this South China Sea area that will enable us to overcome challenges presented by conditions such as deep water, adverse weather, relatively heavy oil, and complex reservoir properties," Morrow said.

"The development system for Liuhua 11-1 field will require technology innovations that include horizontal drilling, subsea wells, and floating production systems."