Roc gains CNOOC approval for Beibu Gulf development

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Aug. 25 -- A joint venture led by Roc Oil Ltd., Sydney, has received approval from China’s CNOOC for the overall development plan for three offshore oil fields in the the Beibu Gulf.

CNOOC has signed a supplemental development agreement for the 6.12, 6.12 South, and 12.8 West oil fields attached to the Block 22/12 petroleum contract area, thus confirming the national company’s 51% participating interest and the arrangements concerning facility integration plus the sharing of services and personnel.

Roc’s Beibu Gulf development includes the use of existing CNOOC-operated processing, pipeline, storage, and sales facilities on the 12.1 oil field to host production from the three fields. Estimated total recoverable reserves range from 15-72 million bbl.

The commercial terms encompass tariff charges for use of the CNOOC pipeline and terminal facilities as well as other cost-sharing arrangements.

CNOOC will take up operatorship of the new project’s facilities on behalf of the Roc JV and be responsible for engineering and construction. This is expected to take advantage of existing synergies and lower cost structures.

As many as four new exploration wells will be drilled from the 6.12 South and 12.8 West platforms during the development work.

Final investment decision on the Beibu Gulf project is scheduled for October or November. The fields should then be brought on stream during second-half 2012.

Participants in the overall project are CNOOC with 51%, Roc holding 19.6%, and fellow Australian companies Petsec Energy Ltd., Sydney, 12.25%; Horizon Oil Ltd., Sydney, 14.7%; and Oil Australia, Perth, 2.45%.