SYDNEY, Australia – Production has started from the first appraisal well drilled in the Zhanghai block offshore China.
This was one of two adjoining blocks added to ROC Oil (Bohai)’s existing Zhao Dong block contract, the aim being to commercialize previous near-field discoveries in the area, and to stimulate further appraisal activity.
Well ZD CP2N-H-1 began drilling from the Zhao Dong C4 platform in mid-July, and intersected 310 m (1,017 ft) of horizontal reservoir section. It was completed and production has started through the C4 facilities at an initial rate of 3,546 b/d of oil.
PetroChina exercised its rights under the PSC to take a 51% interest in the new Zhao Dong blocks. ROC has 39.2% and Sinochem 9.8%.
ROC now plans to drill a second appraisal well next year (ROC 80% cost obligation on a dry hole basis) during 2012.