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 potentially 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. |
On 27 September 2008, CNOOC confirmed that the Wei 6-12, Wei 6-12S and Wei 12-8 Oil Fields have been declared 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. Preparation of an ODP is near complete. The technical section was completed in 4Q 2009. The economic section is pending completion of commercial negotiations, which are in the final stages with the majority of commercial terms agreed with CNOOC. Completion of ODP is planned for 1Q 2010, to be followed by formal Chinese Government approvals and the Final Investment Decision. First oil production is anticipated in 1H 2012. Best estimate contingent resources at 30 June 2009 for the Beibu Gulf oil development are 5.2 MMBOE net to ROC. |