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Two Fields in Bohai Bay Start Production Successfully

Source: www.gulfoilandgas.com 10/20/2010, Location: Asia

CNOOC Limited announced that its two new oil fields, BoZhong (“BZ“) 26-3 and LuDa ("LD") 32-2 in the Bohai Bay have successfully commenced production recently.

BZ 26-3 is located in the central part of Bohai Bay, neighboring producing field BZ 25-1S. The field has an average water depth of about 25 meters. The development and production operations of BZ 26-3 mainly rely on the facilities of its surrounding oilfields. With 4 wells online currently, BZ 26-3 is expected to hit its peak production of more than 6,600 barrels per day in 2011.

LD 32-2 is located in the Eastern Bohai Bay with water depth of about 25 meters, and adjacent to producing oil field LD 27-2. In order to reduce production cost, a joint development plan was carried out for both LD32-2 and LD27-2 fields. The field has 4 production wells currently. The peak production of LD 32-2 is expected to reach 6,300 barrels of oil per day in 2011.

BZ 26-3 and LD 32-2 are all independent oil fields of CNOOC Limited. The Company holds 100% interest and acts as the Operator of these two fields.

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