CNOOC Starts Up Production at Bozhong Oil Field in Bohai Bay

CNOOC's Bozhong (BZ) 28-2S oil field has successfully commenced production with 4000 barrels of oil per day via 4 wells.

BZ 28-2S, located in the south of Bohai Bay with a water depth of 21 meters, is the largest field among all the oil projects expected to come on stream this year offshore China.

BZ 28-2S, together with BZ29-4, BZ28-2SN and BZ34-1N, is subject to joint development to maximize the commercial value. These oil fields, adjacent to each other, are collectively named as BZ28-2S oil fields, of which BZ28-2S is the first to start production.

The production is expected to ramp up an average 25,000 barrels of oil per day by 2011.

The main development facilities include one central platform, 49 wells and one FPSO. By sharing facilities, BZ28-2S and other fields will be developed in a more effective way.

According to the Company's 2009 plan, there will be five new projects coming on stream in Bohai Bay. The early start-up of BZ28-2S will serve to accelerate the development of the other four projects.

BZ28-2S is an independent field of CNOOC Ltd, which was discovered in 2006.