Zhao Dong is a stacked reservoir system with 27 stratigraphic levels known to contain oil; 16 of which are currently productive. Oil production commenced in 2003 and ROC acquired a 24.5% interest in the block in 2006.
Recent (2009) drilling operations were completed ahead of plan, with the drilling team delivering outstanding results: the programme was completed with a 25% cost improvement in the overall programme versus budget, and an average well was completed in under 12 days, a 40% efficiency improvement versus 2008.
Also in 2009, ROC successfully commissioned the second processing platform (‘OPB’), the second drilling platform (‘ODB’) and a high pressure flare structure. OPB was the last of five structures installed as part of the development plans for the Zhao Dong oil fields and its commissioning represented the completion of facility development activities that started in early 2007.
Combined total oil production from the C & D and C4 oil fields was 7.2 MMBBL in 2009, the highest in three years despite the worst winter weather conditions experienced in the fields since production commenced in 2003. Higher than expected production levels were due to the better than forecast performance from wells drilled in 2009, supplemented by the previously shut-in high water cut wells, which were brought back into production after OPB was commissioned.
ROC initiated a continuous improvement process and established action teams to enhance teamwork, operating efficiency and cost effectiveness. ROC also intends to leverage on the Company’s Zhao Dong experience and infrastructure to support a long term growth plan in China.
In 2010, ROC aimed to maintain oil production from Zhao Dong at similar volume and rates as the previous year. Development plans included: drilling up to 24 wells in C4, ERA and the C & D Fields; installing low pressure gas compression equipment to start gas sales to shore and eliminate gas flaring; and possibly installing a new power cable from onshore to reduce fuel consumption.