Production begins in China’s Bohai Bay

Petroleum News Alaska Staff

Phillips China Inc., a subsidiary of ConocoPhillips, and China National Offshore Oil Corp. Ltd. announced first production from the Peng Lai 19-3 field in China's Bohai Bay Dec. 31.

"This is a significant achievement for our companies to have production from this large oil field approximately three years after it was discovered," said Roy Lyons, president of Phillips China. "This demonstrates the continuous cooperation of CNOOC and ConocoPhillips to develop China's energy resources."

ConocoPhillips and China National Offshore Oil signed a petroleum contract in December 1994 granting ConocoPhillips the right to explore Block 11/05, a 2.3 million-acre area located in Bohai Bay. China National elected to participate in the PL 19-3 Phase I development with a 51 percent working interest.

Phillips China drilled the PL 19-3-1 discovery well in May 1999, ConocoPhillips said, followed by six successful appraisal wells. Phase I development will utilize one 24-slot wellhead platform and a floating production, storage and offloading facility, with daily gross production rates expected to reach 35,000 to 40,000 barrels of oil per day with 17,500 to 20,000 bpd net to ConocoPhillips.