Beibu Gulf development clears hurdle

Roc Oil (China) and its partners in the Beibu Gulf project joint venture have signed a Supplemental Development Agreement (SDA) with CNOOC for an oilfield program offshore China.

Offshore staff

SYDNEY, Australia -- Roc Oil (China) and its partners in the Beibu Gulf project joint venture have signed a Supplemental Development Agreement (SDA) with CNOOC for an oilfield program offshore China.

The SDA, signed in Beijing last week, concerns development of the WZ 6-12 and WZ 12-8 West fields in the Beibu Gulf. It outlines the commercial terms agreed in May, and arrangements regarding facility integration and sharing of services and personnel. The SDA also confirms that CNOOC will take a 51% participating interest in the project.

According to Roc Oil, the development will use existing CNOOC-operated facilities to host production from the two fields. The commercial terms cover tariff charges for use of the CNOOC pipeline and terminal facilities, and other cost-sharing arrangements.

CNOOC will operate the new project's facilities on behalf of the joint venture and will have responsibility for engineering and construction. ROC staff will be seconded to a joint project team.

Documentation for the Overall Development Plan (ODP) has also been submitted to CNOOC for review and approval. Once this stage is passed, the joint venture will proceed to its Final Investment Decision and submit the ODP to the Chinese Government.

Roc expects first oil production during the first half of 2012. The other partners are Horizon and Petsec Petroleum.

08/30/2010

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