Exploration and appraisal
Successful drilling campaigns have been conducted in the Zhao Dong Block. Between 1994 and first production from the C and D fields in 2003, 11 exploration wells were drilled in the block, of which eight (73%) encountered significant oil. A multi-well drilling program targeting appraisal and near-field exploration opportunities is planned to continue over the next few years in the Extended Reach Area ("ERA") in the northeastern part of the C Field, as part of the Incremental Development Plan ("IDP").
In addition, further exploration and appraisal activity is planned for the adjoining Zhanghai and Chenghai Blocks where previous discoveries have been made. The first ROC-operated exploration well in the Zhanghai Block was drilled from 15 July to mid-August 2011 as part of normal batch drilling operations from the C4 platform location. The well intersected 310m of horizontal reservoir section, was completed and commenced production through existing C4 facilites an an initial rate of 3546 BOPD.
On 11 May 2012, ROC was awarded a 100% operated interest in a new exploration block offshore Bohai, the Bohai 09/05 Block, located approximately 15km north of ROC's Zhao Dong production and appraisal blocks. The minimum work commitment for the first phase of the exploration period includes 3D seismic acquisition and the drilling of exploration wells. Upon a successful discovery, CNOOC has the right to participate in up to 51% of any development
Production and development
The Zhao Dong Block contains the C & D Oil Fields and part of the C4 field which are currently producing and undergoing simultaneous continuous development. Production commenced from the C4 unitised field and from the ERA from new facilities commissioned in October 2008.
It is anticipated that any potential commercial development in the adjacent Zhanghai and Chenghai Blocks would utilise the existing Zhao Dong facilities. The term of the Zhao Dong Contract and Production Period will be extended when and as necessary to accommodate any new production from the additional blocks.
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