Kerr-McGee gets nod to develop Bohai Bay fields

Oklahoma-based independent Kerr-McGee said March 7 it has received approval from the China National Offshore Oil Corp. to develop the CFD 11-3 and CFD 11-5 fields on block 04/36 in China’s Bohai Bay.

Development of the two fields, which cover three Guantao reservoir zones, will use four horizontal wells and a single unmanned well-head platform, tied back about three miles to the CFD 11-1 gathering platform, Kerr-McGee said. First production from the development is expected in the second half of this year.

“These developments extend the success of our hub-and-spoke strategy, and bring additional volumes and value to our existing infrastructure in this new core area,” said Dave Hager, Kerr-McGee’s head of exploration and production.

Production from the Kerr-McGee-operated CFD 11-1 and CFD 11-2 fields currently ranges from 40,000 to 45,000 barrels of oil per day with 33 wells on line. Three additional fields are moving toward development.

Kerr-McGee operates CFD 11-3 and CFD 11-5 with a 40.09 percent working interest. Ultra Petroleum holds an 8.91 percent stake and CNOOC holds the remaining 51 percent working interest.

In addition, Kerr-McGee continues appraisal work at its CFD 14-5 discovery on block 09/18. Kerr-McGee operates the discovery with a 100 percent pre-development foreign contractor’s interest.

—Ray Tyson