Sino O&G to Move Sanjiao CBM Block to Development Stage by 2013

Hong Kong-listed Sino Oil and Gas Holdings is aiming to move its onshore Sanjiao coal bed methane (CBM) project from the exploration to the development phase by early-2013, a company spokesperson told Rigzone in an interview on Monday.

The spokesperson said that the company's decision was made after it received approval for its overall development plan (ODP) from China's National Energy Administration (NEA) on August 16, 2012. 

For foreign operators involved in CBM projects, obtaining an ODP approval is a significant turning point as it means that a company can move from the exploration phase to the development phase, and then finally to the commercial production phase. 

Among the foreign operators partnering PetroChina, Sino Oil and Gas Holdings is the first company to receive the green light for its ODP. 

"After our development phase, which is likely to last for two years, we will then move into the commercial production phase in 2015," the company spokesperson said. 

The spokesperson estimated that by the end of this year, Sino Oil and Gas will have drilled a total of 67 producing wells in the Sanjiao block. In the company's Sanjiao block development plan, the producing wells will be connected to the local natural gas pipeline network in Shanxi province for industrial CBM users. The local natural gas pipeline network is owned and operated by PetroChina.

The Sanjiao block in eastern Ordos is one of the most promising blocks in the basin and it is high on PetroChina's strategic development plans. According to a research report by Bernstein Research in July 2011, gas-in-place estimated for the Sanjiao block is around 2.1 trillion cubic feet. 



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