Two more fields are to be developed in the South China Sea off China under an agreement between the government and units of Phillips Petroleum Co. and Shell Oil Go. affiliate Pecten International Co.
Under a supplemental development agreement with China National Offshore Oil Corp. (Cnooc), operator Phillips Petroleum International Corp. Asia and Pecten Orient Co. will develop Xijiang 30-2 oil field, a 1988 discovery in the Pearl River Mouth basin.
The agreement also lays out terms and conditions for joint development of Xijiang 24-3 oil field, a 1985 discovery 4 miles northwest of Xijiang 30-2 (see map, OGJ Apr. 22, 1985, p. 48). Development of both fields will begin upon approval of an overall development program by the partners and final approval by Beijing.
DEVELOPMENT DETAILS
First production from Xijiang 24-3 is expected by late 1994. Start-up of Xijiang 30-2 is expected in late 1995.
Estimated initial production levels have not been determined. However, an early unconfirmed report estimated reserves of Xijiang 24-3 at 45 million bbl and projected peak output at 3,200 b/d (OGJ, Mar. 20, 1989, p. 26). The 24-3 confirmation well yielded the biggest flow rate of an oil well off China up to that time with a combined rate of 14,755 b/d of 27.7-40 gravity, high wax content crude from four zones below 6,200 ft (OGJ, Sept. 30, 1985, p. 34).
Initial estimate of reserves at Xijiang 30-2 was 40-60 million bbl of oil (OGJ, June 3, p. 32).
Development would entail installation of two fixed production platforms and a floating Production and storage facility between the two fields. Phillips will manage construction.
Xijiang 30-2 field interests are Pecten 47.75%, Cnooc 40%, and Phillips 12.25%. Xijiang 24-3 interests are Cnooc 51% and Phillips and Pecten 24.5% each.
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