CNOOC approves Beibu Gulf development

Offshore staff

SYDNEY, Australia – Petsec Energy Ltd. reports that the China National Offshore Oil Co. (CNOOC) has approved the project investment and overall development plan for three oil fields in block 22/12, Beibu Gulf, China.

The $300-million Overall Development Plan covers 6.12, 6.12 south, and 12.8 West oil fields. Petsec Energy Ltd. and its joint-venture partners are moving toward f final investment decision, expected before the end of February.

The development covers drilling 11 development wells and potentially three to four exploration wells targeting potential reserves of 20 to 40 MMbbl from two unmanned well head platforms at the 6.12 South and 12.8 West oil fields. These platforms will be connected by pipelines to a new CNOOC processing platform, adjacent to CNOOC’s 12.1.1 platform. The project will have access to 20,000 b/d of oil processing capacity from which oil will be transported through CNOOC’s 16-in pipeline 32 km (20 mi) to storage and export terminal at Weizhou Island. Engineering design work and bidding for long lead equipment has begun and first oil production is expected before year-end 2012.

The participants in the development of the 6.12, 6.12 South and 12.8 West oil fields are CNOOC Ltd (operator) with 51%, Roc Oil (China) Co. with 19.60%, Horizon Oil (Beibu) Ltd with 14.7% Petsec Energy Ltd at 12.25%, and Oil Australia Pty Ltd (Majuko Corp)the remaining 2.45%

1/31/2011