Engineering Contract Awarded for Pinghu Gas Field

Nanhai West United Offshore Construction has been awarded an engineering service contract by Shanghai Oil & Gas for the expansion of the Pinghu gas field located in the East China Sea. The contract calls for the installation of two gas compressors, upgrades to the well control system and the central control system.

Another platform will also be built and eight more production wells will also be drilled. The work is expected to be completed by the third quarter of 2003. Production is expected to increase from 1.6 million cubic meters per day to 2.2 million cubic meters per day. The Pinghu field first commenced production in 1999 at a rate of 200,000 cubic meters per day.

Partners in the field are Shanghai Oil & Gas with 40%; CNOOC with 30% and Sinopec with the remaining 30%.