Phillips will start commercial production at the Penglai 19-3 oilfield in northeast China's Bohai Sea next year. The Penglai 19-3 field would produce an estimated 35,000 to 40,000 barrels of oil per day (bpd), rising to 150,000 bpd by 2006. "We are working very hard with CNOOC, our partner, to bring that development into production next year," stated Roy Lyons, president of Phillips China Inc. The field is a venture with CNOOC Ltd. Phillips is already cooperating with CNOOC on production at the Xijiang oilfields in the South China Sea. Daily oil output from the three fields peaked at 147,000 bpd and now averages around 83,000 bpd. Phillips announced last month it would acquire Conoco Inc. to create the world's sixth biggest integrated oil company. But the merger would have little impact in China, Lyons said. "Conoco has very little presence here, so we don't really see much impact on our business in China because of the merger," he said.