Project Profile
Location: Bohai Bay Basin, joint blocks ― C/D and C, China
Production: 1.01 million metric tonnes of crude oil (annually)
Start-up Year: August 2003
In February 1993, China National Oil & Gas Exploration and Development Corporation (CNODC), a subsidiary of CNPC, signed an oil contract on Zhaodong Block with XCL, with the contract term of 30 years includes the evaluation, development and production periods. In August 1994 and May 1995, APACHE completed the acquisition of the 50% interest of XCL on two occasions, and became the operator of the Zhaodong Project. In March 2006, PetroChina, a holding company of CNPC, and APACHE signed the joint development contract on Block C-4 in Bohai Bay Basin.
In August 2006, ROC Oil acquired all the interest of APACHE in the block and became the current operator of the Zhaodong Project. Zhaodong Block is located at the tidal and shallow water zone in the Bohai Bay Basin. It covers two joint blocks ― C/D and C4, whose proven oil in place in are 67.86 and 11.55 million tons respectively, covering an area of 35.85 square kilometres.
In March 2001, development of the C/D Oilfield of Zhaodong Project started. In August 2003, the oilfield was formally put into production, with a daily output of 6,000 barrels. During the development of the field, horizontal wells and high deviated wells were drilled, and multiple fracturing with sand control completion was applied. The penetrated horizontal intervals have an average length of 400 metres. The initial daily output per individual well is averagely over 2,000 barrels. From 2004 to 2006, Zhaodong Oilfield produced more than 1 million metric tonnes of crude oil, up to 3.71 million metric tonnes cumulatively. Its average daily output of 2,250 metric tonnes and daily output per individual newly drilled wells of more than 300 metric tonnes on average are remarkable in the development and construction of China\'s tidal and shallow water oilfields. In 2006, 1.29 million metric tonnes of oil was produced.
In 2009, 1.04 million metric tonnes of oil was produced from these two blocks, exceeding one million metric tonnes for the sixth consecutive year, despite the climbing composite decline rate in mature blocks and increasing difficulties in well site locating and drilling engineering. The second-phase offshore engineering project, which lasted two-and-a-half years, became operational in August 2009. There were 86 newly added wellhead slots, the newly added crude processing capacity amounted to 30,000 barrels a day; and newly added water processing capacity 60,000 barrels a day. By the end of 2009, the offshore project was capable of processing 60,000 barrels of crude and 120,000 barrels of water per day. In 2010, Zhaodong Project produced 1.01 million metric tonnes of crude oil. The natural gas pipeline became operational on a trial basis, delivering associated gas through an undersea pipeline to Chenghai 1-1 artificial island in the tidal area of Dagang Oilfield for processing. Once being fully operational, the pipeline is expected to transport 60-70 million cubic metres annually, which will provide an important new source of gas for Beijing and Tianjin.
Operators:
ROC Oil: Operator with 50% interest
China National Oil & Gas Exploration and Development Corporation (CNODC): 50% interest