CNOOC began production at its 100% owned and operated Jinzhou 9-3, offshore China.
Image from CNOOC.
The Jinzhou 9-3 oilfield is located in the North Liaodong Bay in Bohai in 6.5-10.5m water depth.
There are currently 15 wells producing approximately 7600 b/d of crude oil at the field. Main production facilities of this adjustment project include one central processing platform, one wellhead platform and 21 producing wells.
The overall development plan for Jinzhou is to have peak production of approximately 12,000 b/d in 2015.
Including Jinzhou 9-3, CNOOC plans to have seven new project come on stream this year. Other projects in Bohai include the Kenli 10-1 project that is expected to reach a peak production of 36,000 boe/d, and the Bozhong 28/34 with an expected 30,000 boe/d at peak production.
CNOOC says that within the year, it plans to drill around 162 exploration wells and acquire approximately 36,000km of 2D seismic data, as well as approximately 14,000sq km of 3D seismic data. The reserve replacement ratio (RRR) is targeted at over 100%.
CNOOC’s 2015 business strategy and development plan has the company’s net production target set in the range of 475-495 MMboe, with 67% coming from China and the remaining 33% from overseas accounts, which represents a 9.9% to 14.5% increase over 2014’s estimated net production of about 432 MMboe.
Net production targets for 2016 are 509 MMboe and 2017 are set around 513 MMboe.
The company’s total capital expenditure budget is in the range of US$11.2-$12.8 billion in 2015 with a decrease of 26-35% over the estimated realized capital expenditure for 2014, among which the capital expenditures for exploration, development and production account for around 21%, 67% and 10% respectively.
"In response to challenges from falling oil prices, we will control our costs and strive for the effective implementation of our capital expenditure plan in order to improve the overall performance of the company," says Zhong Hua, CNOOC CFO.
In January, the company encountered oil and gas at its deepwater Lingshui 25-1 prospect in the Qiongdongnan basin in the South China Sea. The well was tested to produce about 35.6 MMcf/d of natural gas and 395 b/d of oil. The Lingshui 25-1 structure is northeast of Ledong Sag at an average water depth of 980m. The Lingshui 25-1-1 discovery well was drilled and completed at 4000m deep and encountered the oil and gas pay zone with a total thickness of about 73m.