Beibu in production

March 22, 2013

First production has begun at the CNOOC-operated Beibu Gulf Project in the South China Sea, announced partner Roc Oil on 21 March 2012.

Roc said production from two development wells, A5H and A2 on the WZ 6-12 wellhead platform, follows the successful installation, hook-up and commissioning of offshore facilities.

Beibu

The trial production period will continue until the next batch of three production wells, as envisaged within the scope of the original Overall Development Plan (ODP), are completed and brought online in the next few weeks. On completion of the ongoing completions campaign, the HYSY 931 jack-up drilling rig will drill three additional development wells (A8, A9 and A10) designed to maximize returns from recent exploration success. The successful A6 and A7 wells drilled late 2012 will also be equipped for production. A number of completion activities relating to hook-up and commissioning are still in progress. The WZ 6-12 operations will be constrained by simultaneous activities for a numbers of weeks whilst both drilling and commissioning works are finalised. On completion, 10 wells will have been drilled from the WZ 6-12 platform and connected to the production system, five more wells than originally contemplated in the ODP.

The drilling rig is expected to move to WZ12-8 West wellhead platform for the final phase of development drilling during the third quarter. Production from the Beibu fields will progressively ramp up through the year as batches of development wells are drilled, completed and brought on line.

"ROC is delighted that we have achieved such an important project milestone. Safe and cost efficient project delivery, combined with the opportunity to convert exploration success into early production potential is an outstanding result for the joint venture partnership," ROC’s CEO Mr Alan Linn said. "The integrated Beibu Gulf exploration and development plan, delivered by the project management team under CNOOC’s and its subsidiaries capable direction, will exceed project expectations. Congratulations and thanks to CNOOC on behalf of ROC and our partners."

CNOOC operates the Beibu Gulf Project with 51% interest. Its partners include Roc Oil (China) Company 19.6%, Horizon Oil (Beibu) Ltd and Horizon Oil (Nanhai) LLC1 26.95%, and Oil Australia Pty Ltd (Majuko Corp) 2.45%



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