ROC’s first contact with China’s oil industry was in 1998 when the Company exported oil it was producing in Mongolia into China by rail. The oil was sold to Shijiazhuang Refinery (subsidiary of Sinopec). In 2002, ROC sold the Mongolian acreage to Dongsheng Oil Company, a subsidiary of Sinopec.
In 2002, ROC farmed into Beibu Gulf Block 22/12 through a 25% equity in the offshore block. Within the month ROC drilled its first well and discovered oil. ROC acquired operatorship and increased its equity to 40%. In April/May 2006, the drilling of the Wei 6-12S-1 exploration well made a significant oil discovery. Two appraisal wells were subsequently drilled on the field.
Following the formal end to the exploration period for Block 22/12 on 30 September 2008, the Wei 6-12, Wei 6-12S and Wei 12-8 oil fields were declared development areas. The Overall Development Plan (ODP) was completed in 2010 and following final CNOOC approval in January 2011, the joint venture proceeded to its Final Investment Decision in February 2011. The project investment and ODP have been submitted to the relevant Chinese Government Authority for formal approval.
On 1 July 2006, ROC acquired a 24.5% operated interest in the Zhao Dong Block in the Bohai Bay, offshore China, via the purchase of 100% of the shares of Apache China Corporation LDC. Within the block there are two producing fields - C&D. Production commenced from the C4 Field (ROC 11.575% unitised interest) and the Extended Reach Area of the C&D Fields from new facilities commissioned in October 2008.
In March 2011, the existing Petroleum Contract covering the Zhao Dong Block was modified to include the adjacent Zhanghai and Chenghai Blocks with the aim of commercialising previous near field discoveries in the area and encouraging further exploration activity. ROC has a 39.2% operated interest in the additional blocks (following government back in to development/production).
