BG Group Strikes Gas Offshore China
- Business & Finance
BG Group today announced a discovery on Block 64/11 offshore China after the Lingshui 22-1-1 exploration well encountered gas-bearing sands.
The well, the first drilled by BG Group in China, is in the deepwater Qiongdongnan Basin in the South China Sea, approximately 130 kilometres offshore and in a water depth of 1 338 metres. BG Group will now conduct further analysis of the well results to increase understanding of the hydrocarbon potential in the Block.
BG Group Chief Executive Frank Chapman said: “This is an encouraging result from our first well offshore China, where our licence area encompasses three Blocks spanning some 15 000 square kilometres adjacent to large and rapidly growing Chinese gas markets.”
BG Group plans to continue its exploration programme in 2011, with a second well to be completed early in the year and the acquisition of 1 500 square kilometres of 3D seismic data on Block 63/16.
Block 64/11 is located south of Hainan Island in water depths of 200 to 2 250 metres.
BG Group entered into a deepwater Production Sharing Contract for Block 64/11 with the China National Offshore Oil Corporation (CNOOC) on 7 June 2006.
BG Group is the operator of Block 64/11 with a 100% working interest. In the event that a gas or oil field located on Block 64/11 receives development approval, CNOOC has the right to acquire an interest of up to 51% and would contribute to the cost of development.
BG Group also operates two adjacent blocks in the Qiongdongnan basin, Block 53/16 (acquired June 2006) and Block 63/16 (acquired December 2009).
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 25 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG) transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.
Source: BG Group, December 15, 2010; Image: