CNOOC Begins Production at Hui Zhou 21-1 Gas Field

Hui Zhou 21-1
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CNOOC reports that the Hui Zhou (HZ) 21-1 gas field in Eastern South China Sea has come on stream successfully. The field is producing 54 million cubic feet of natural gas per day via 4 wells currently.

HZ 21-1 gas field is located in the block 16/08 of the Pearl Mouth Basin, with a water depth of 115 meters approximately. The gas after processing will be piped to a natural gas terminal in Zhuhai through subsea pipelines. HZ 21-1 gas field is operated by CACT Operators Group. The Company holds 51% of interests in the field.

To make it more commercially viable, the Company and its partners have made joint development plan for Hui Zhou 21-1 and Pan Yu 30-1 gas fields. The latter will begin production in 2007. The natural gas produced from these two fields will be supplied to power plants and nearby cities.

The annual production of HZ 21-1 gas field is designed at 19.7 billion cubic feet of natural gas.

Mr. Zhou Shouwei, President of the Company commented, "I am pleased to see the startup of this field on schedule and supplying gas to the end users. This is the first gas field in Eastern South China Sea with prominent geographic advantage. The successful commencement of this field proved our excellent execution capabilities in carrying out the natural gas strategy."
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