Chinese producer CNOOC Limited (NYSE: CEO) has recently commenced production from its two new oil fields, BoZhong (BZ) 26-3 and LuDa (LD) 32-2 in the Bohai Bay.
BZ 26-3 is located in the central part of Bohai Bay, neighboring producing field BZ 25-1S. The field has an average water depth of about 25 meters. The development and production operations of BZ 26-3 mainly rely on the facilities of its surrounding oil fields. With 4 wells online currently, BZ 26-3 is expected to hit its peak production of more than 6,600 barrels per day in 2011.
LD 32-2 is located in the Eastern Bohai Bay with water depth of about 25 meters, and adjacent to producing oil field LD 27-2. In order to reduce production costs, a joint development plan was carried out for both LD 32-2 and LD27-2 fields. The joint facilities include two wellhead platforms, one production and storage platform, and 34 production wells. The LD 32-2 field has 4 production wells currently online. The peak production of LD 32-2 is expected to reach 6,300 barrels of oil per day in 2011.
BZ 26-3 and LD 32-2 are all independent oil fields of CNOOC Limited. The company holds 100% interest and acts as the operator of these two fields.