KERR-MCGEE has achieved first commercial oil from its multi-field Bohai Bay project offshore China ahead of schedule. Production started on July 18 and is initially based on four wells at the CFD 11-1 and CFD 11-2 fields on block 04/36, with six further wells expected on-stream before the month end.
The company estimates that production from the 10 wells will range from 15,000 to 20,000bpd. More wells will be brought onstream over the next two years, with peak production of 40,000-50,000bpd expected by mid-2005.
"First production from Bohai Bay was achieved ahead of schedule thanks to outstanding efforts by our employees and contractors," said Dave Hager, Kerr-McGee senior VP responsible for oil and gas exploration and development.
CFD 11-1 and CFD 11-2 are being developed using the Hai Yang Shi You 112 - Kerr-McGee Global Producer VIII floating production, storage and offloading facility (FPSO).
The 909ft vessel is anchored in 75ft of water to a single-point mooring tower that allows the vessel to weather vane in any direction. It has daily production capacity of 80,000 barrels of oil and 350,000 barrels of gross liquids, and storage capacity for one million barrels.
The first phase of the Bohai development also includes a 48- slot wellhead gathering platform and a 24-slot wellhead platform. Kerr-McGee is operator of phase-one with a 40% interest. Partners in the development are China National Offshore Oil Corp (51%) and Sino American Energy Corp (9%).
Hager said that phase-one was the core of the Bohai Bay development and would anchor further stages.
"Consistent with our hub-and-spoke strategy of developing core areas in proven petroleum basins, this infrastructure will allow for the cost-effective development of additional discoveries in this new core area for Kerr-McGee," he said.
"With five more discoveries to date, additional identified prospects and interests in approximately 1.7million gross undeveloped acres, we plan to leverage our expertise to build on our success in Bohai Bay."
Development planning is ongoing for other discoveries on the 04/36 block, including the CFD 11-3, CFD 11-5 and CFD 11-6 fields, each operated by Kerr-McGee with an 82% predevelopment foreign contractor's interest. Development planning is also under way for two discoveries on the adjacent 05/36 block, the CFD 12-1 and CFD 12-1S fields, which are operated by Kerr-McGee with a 50% pre-development foreign contractor's interest. Each of these discoveries is a candidate to be tied back to the Kerr-McGee Global Producer VIII facility.
A little-known dimension to the Bohai Bay project is that fast-growing energy contractor Petrofac assisted with the training of key Chinese personnel for the development, with a number of delegations hosted at the company's North Sea headquarters in Aberdeen.
Source: The Press & Journal