Primeline Energy has contracted China Oilfield Service Co. (COSL) as drilling contractor for its Block 33/07 exploration program in the East China Sea.
Primeline says the rig market has proved favorable with good availability of suitable rigs and competitive prices.
It will cost the firm around US$20 million to drill two wells in Block 33/07, and this excludes costs for any test when oil and gas is discovered.
Work is scheduled to begin in August. COSL will drill the first well, LS23-1-1, and the second well will be selected following evaluation results from the first.
“This exploration program is the first step in the rolling development strategy, now that the production infrastructure hub and access to gas market have been established, and LS36-1 has been in production,” says Primeline.
The China-focused exploration company now plans to find more hydrocarbons to capitalize the infrastructure hub and access to market. Primeline is the operator of the petroleum contract with China National Offshore Oil Corp.(CNOOC) for Block 33/07. The LS36-1 gas field has been in production since July 2014.