CNOOC Turns on Taps Early at Luda Oil Field

CNOOC announced today that Luda (LD) 27-2, a new independent field in Bohai Bay, has come on stream ahead of schedule. The field is producing at a volume of 11,000 barrels of oil per day from 11 wells currently.

LD 27-2 is located in the Eastern Bohai Bay in about 25 meters of water. It is about 104 kilometers northwest of Qinhuangdao City of HeBei Province.

LD27-2 is adjacent to LD 32-2 oil field, an independent project of the Company under construction. In order to reduce production cost, a joint development plan was carried out for both fields. Major development facilities of LD27-2/32-2 include: two wellhead platforms, one production and storage platform and 34 production wells.

The peak production of LD 27-2/32-2 is designed at 13,000 barrels of oil per day. LD 32-2 is expected to be on stream later this year.

Yang Hua, President of the Company, said, "Thanks to the effective project management and efficient leveraging of the operating sources, we are able to bring LD 27-2 on stream ahead of schedule."

CNOOC limited acts as the operator and has a 100% interest in the LD 27-2/32-2 oil fields.