Primeline enters second phase of exploration in East China Sea block
- Project & Tenders
Primeline Energy has agreed with China National Offshore Oil Corp. (CNOOC) that it will enter the next and second phase of exploration commitment under the petroleum contract for Block 33/07, in the East China Sea.
Block 33/07 is located about 390 kilometers of Shanghai in the East China Sea, with water depth of 90 meters. Primeline is the operator of the petroleum contract with CNOOC for Block 33/07.
Primeline stated that this decision followed the completion of its evaluation of the 2015 programme which saw a drilling operation of two exploration wells – LS23-1-1 and LS30-3-1.
According to Primeline, both wells encountered very good sandstone reservoirs as predicted and gas shows, but were not commercial.
By entering into phase two, Primeline has agreed to relinquish 25% of the contract area under the petroleum contract. The contract area for Block 33/07 is 4,397 sq km.
Block 33/07 surrounds Block 25/34 where the LS36-1 gas field is located. Primeline added that any discovery from Block 33/07 can enjoy the benefit of LS 36-1 production facility which has been in production since July 2014.