Phillips China Inc. has found oil in China's Bohai Bay.
After drilling a dry hole on its first try on Bozhong block, its second well, Peng Lai 14-3-1, flowed on test at a rate of 1,602 b/d.
Phillips China, a unit of Phillips Petroleum Co., is operator of the block and holds a 60% interest. Union Texas Petroleum holds the remaining 40%.
China National Offshore Oil Corp. has the right to acquire as much as 51% of any proposed development.
The discovery
The 2.3 million acre Bozhong block lies about 240 miles southeast of Beijing.
The discovery well, Peng Lai 14-3-1, is in the east central portion of the bay (see map).
The well was drilled to 12,766 ft TD in 79 ft of water. At 7,434-8,129 ft, it cut a gross oil column of 686 ft in Miocene sandstone.
Two drill stem tests flowed a combined 1,602 b/d of 26-36° gravity oil from 39 ft and 46 ft intervals.
The oil is waxy and has a high pour point-typical for Bohai Bay oil. It is similar in quality to oil produced by Phillips at its Xijiang oil fields in the South China Sea.
Phillips's first exploratory well on Bozhong block-Bozhong 22-2-1-was plugged and abandoned in January 1997. On test, it had flowed hydrocarbons at noncommercial rates.
Early this month, Phillips spudded a third well 35 miles south-southwest of Peng Lai 14-3-1.
The company plans to gather more seismic data and drill a fourth well on the block next year.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
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