Project Profile
Value: Undisclosed
Location: Shizhuang South PSC, Shanxi Province, China
Production Target: 85.2 mcm (2017) 91.5 mcm (2018)
Start-up Year: 2010
GCZ, which covers 67 square km, is part of the Shizhuang South PSC together with the Shizhuang South Block (GSS). The two blocks are adjacent to each other.
GCZ, which is part of the Qinshui Basin, is one of Green Dragon’s key areas of production and focus.
There are two major laterally continuous shallow coal seams present throughout GCZ - coal seam #3 and #15. CBM in this area is embedded in the coal formations at average depths ranging from 300m to 600m. The block has been in commercial production since 2010.
The block, operated by CNPC unit PetroChina, has 104 wells producing gas that is carried to market using the West-East Pipeline (WEP) network. 114 wells have been drilled to date.
In August 2014, PetroChina and Green Dragon entered into a agreement that confirmed participating interests in GCZ. The signing of the agreement followed the October 8, 2013 announcement about drilling activities by third parties across Green Dragon’s blocks.
Under the agreement, PetroChina agreed to provide information necessary for Green Dragon to complete an audit so as to conclude and accept the capital expenditures incurred to develop the block, the gas production, gas sales and related revenues.
The block’s ODP was presented to the NDRC in April 2017 and envisions production of 85.2 mcm in 2017, rising to 91.5 mcm in 2018. Of this, 74.8 mcm is anticipated to come from existing wells and 16.7 mcm from new wells.
Operators:
CNPC: operator with 53%
Green Dragon: 47% interest
Contractors:
Greka Drilling: US$45 million contract to drill 30 wells for Green Dragon on the whole Shizhuang South Block, utilising up to 10 existing GD75 rigs.