CNOOC Begins Production from Suizhong 36-1

CNOOC Limited announced that one of the three production platforms of Suizhong 36-1 (Phase II-2) started initial production. As planned, the production volume of Platform C will be gradually brought to about 9,000 barrels a day.

"The start-up of Suizhong 36-1 (Phase II-2) was a result of the Company's concerted efforts to meet development schedule," commented Mr. Zhou Shouwei, Executive Vice President of the Company. "It is one more piece of evidence that the company's development program is well on track."

The Platform C was the fourth brought to production in Suizhong 36-1 (Phase II) project. Platforms D, E and F started production at the end of last year. Suizhong 36-1 (Phase II-2) includes the construction of the last three platforms. The remaining two platforms, G and H, in Suizhong 36-1 (Phase II-2) are scheduled to be brought into production at year end.

Suizhong 36-1, situated in the southern part of Liaodong Bay of Bohai, was discovered by the Company independently and is 100% owned and operated by CNOOC Limited. Suizhong 36-1 holds the Company's largest proved reserves and has been developed in two phases. Suizhong 36-1 (Phase II) consists of one central processing platform, six wellhead platforms, one 70-kilometer oil pipeline to onshore, twelve subsea pipelines that run between platforms, five subsea electric cables, one onshore terminal. It is expected to bring 69,000 barrels per day incremental production at peak once all the remaining production platforms are completed.


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