China’s CNOOC Limited [NYSE: CEO, SEHK: 00883] said Dec. 28 that it has commenced production at two locations in the Pearl River Mouth Basin of the South China Sea, the Panyu 4-2/5-1 oil field adjustment project and the Liuhua 4-1 oilfield project.
Panyu 4-2/5-1 has an average water depth of about 100 meters (328 feet). The adjustment project was designed to share the existing facilities to develop the Panyu 4-2/5-1 oil field more effectively. The adjustment project is expected to hit its peak production in 2014.
CNOOC holds a 75.5% interest in the project and serves as operator of the Panyu 4-2/5-1 oil field. Burlington Resources China holds the remaining 24.5% interest.
The Liuhua 4-1 oil field has an average water depth of about 268 meters (879 feet). In view of the features of the oil field, CNOOC built a new subsea production system while sharing the surrounding facilities for overall development. This project is expected to hit its peak production in 2013.
The Liuhua 4-1 is an independent oil field in which CNOOC holds 100% interest and serves as operator.