CNOOC Fires Up PanYu 30-1 Gas Production in South China Sea

CNOOC has reported the successful start-up of its PanYu (PY) 30-1 gas field. Currently it is producing about 30 million cubic feet of natural gas per day.

PY30-1 is located in the Pearl River Mouth basin in Eastern South China Sea, about 240 kilometers southeast of Hong Kong. The average water depth is around 200 meters.

To enhance the efficient development of resources and reduce the operating cost, the Company has implemented a joint development plan for PY30-1 and HuiZhou (HZ) 21-1 oil and gas field. The PY/HZ project was divided into two phases and its first phase, HZ21-1 field has commenced production since the end of 2005. PY 30-1's start-up successfully concluded the engineering work of the second phase.

The development facilities include one integrated platform and three subsea pipelines. Natural gas from PY30-1 will be piped to an onshore gas processing terminal which is located in Zhuhai and then supplied to the users after further processing.

To satisfy the market's needs, daily gas production of PY 30-1 will gradually increase to and remain stable at 93 million cubic feet this year. The peak production of PY 30-1 is expected to reach 160 million cubic feet per day.

PY30-1 is an independent gas field of CNOOC Ltd. and the Company holds 100% interests.


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