Activity status
Exploration and appraisal
Since 2002 ROC drilled six exploration wells in the Block, the first of which, Wei 6-12-1, was a small but potentially commercial oil discovery. In 2006, Wei 6-12S-1 made a significant oil discovery. Four appraisal wells were drilled in the Block.
In 2006, Wei 6-12S-1 drilled approximately 95m of net hydrocarbon pay, mainly oil, with good reservoir characteristics. Testing of three separate zones resulted in a total collective stabilised flow rate of 5,750 BOPD. An appraisal sidetrack intersected 16m net oil pay over four sands, two of which were not present in the discovery well.
There are five undeveloped oil accumulations in the retained development areas: Wei 6-12, Wei 6-12 South, Wei 12-8 West, Wei 12-8 East and Wei 12-3.
Planning is in progress for the drilling of four near-field exploration / appraisal wells during 2012. Several of the wells are planned to be drilled from the WZ 6-12 wellhead platform following its scheduled installation in 2Q-2012. If successful and commercial, these wells could be completed and included as additional production wells for the Beibu Gulf project.
Development
On 27 September 2008, CNOOC declared that the Wei 6-12, Wei 6-12S and Wei 12-8 Oil Fields were development areas.
Development feasibility studies were completed in 2Q 2009 and the CNOOC Experts Review Committee accepted the planned integration and sharing of CNOOC and joint venture facilities as the preferred development option. The development plan incorporates two remote wellhead platforms and one joint processing platform, which will be connected by bridge to the CNOOC WZ 12-1A platform complex and will utilize existing water injection and gas processing facilities.
The technical section of the Overall Development Plan ("ODP") was completed in 4Q 2009 and the economic section was completed in 2Q 2010. A Supplemental Development Agreement to the Petroleum Contract to include the agreed commercial terms was signed on 24 August 2010. The project investment and ODP were approved by CNOOC in January 2011. Following this, the joint venture proceeded to its Final Investment Decision ("FID") in February 2011. The project investment and ODP were submitted to the relevant Chinese Government Authority for formal approval. As a result of FID approval, 2P reserves of 24 MMB (ROC net 4.7 MMB) were booked for the project.
CNOOC assumed operatorship of the project in 2Q 2011 and a CNOOC operating subsidiary company (Weizhou Operating Company) was established (including five ROC employees). In 3Q 2011 basic engineering design for platform and pipeline facilities was completed. Development activity continued to progress during 4Q 2011 and 1Q 2012 including: procurement activity and platform fabrication and installation. 2012/13 development drilling programs and contracts are being prepared.
The Environmental Impact Assessment (EIA) for the project was approved by the Chinese Government's State Oceanic Administration (SOA) in February 2012. This allows offshore development activities to commence. The final government approval required is for sanction of the project by the National Development and Reform Commission (NDRC). On completion of platform installation in 1H 2012, drilling activity is expected to commence mid-year with exploration / appraisal wells, to be followed by the development drilling program in 4Q 2012.
The operator anticipates first oil production by the end of 2012. The ramp-up to full-field peak production is anticipated during 2013.
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