Wei field partners close to export accord

CNOOC and ROC Oil are close to completing an overall development plan (ODP) for two oil fields in the Beibu Gulf.

Offshore staff

SYDNEY --CNOOC and ROC Oil are close to completing an overall development plan (ODP) for two oil fields in the Beibu Gulf.

Under the proposed scheme, output from the Wei 6-12 and Wei 12-8 accumulations in block 22/12 would be exported through a new shared pipeline also open to other fields along the route.

ROC claims this new joint operation will reduce the development costs and improve the economics for Wei 6-12 and Wei 12-8.

It expects to conduct work on front-end engineering design concurrently with the ODP, allowing the two parties to optimize timing of contract commitments to take advantage of lower construction and drilling costs. Pipeline and oil marketing agreements will likely also be negotiated as part of the ODP completion.

ROC anticipates final approvals for the project from the joint venture and the Chinese government during the second half of this year, with first oil production targeted in 2011.

04/22/2009

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