Primeline: LS36-1 field ready to deliver gas (China)

Primeline Energy Holdings Inc. today announced that the development of its LS36-1 gas field offshore China has been completed and it is ready for commissioning and first gas production.

As previously announced, the last part of the development work was the laying of the last 3 km of the gas sales pipeline, connection to the provincial gas grid and final commissioning. The construction of the final 3 km of gas sales pipeline was completed on 26th June 2014 and CNOOC, as operator, has confirmed that the final connection to the facility of the downstream buyer, Zhejiang Provincial Gas Development Co. was completed on July 1 2014.

The final joint commissioning programme is in the process of being agreed by CNOOC and Zhejiang Gas and it is expected that trial gas production will start soon.

Primeline said it would make a separate announcement when gas production begins.

Primeline has a 75% Contractor’s interest in and is the operator of the petroleum contract with CNOOC for Block 33/07 (5,877sq km) in the East China Sea and a 36.75% interest in the LS36-1 gas field in Block 25/34 which is being developed by CNOOC Limited (acting as Operator for the development) together with Primeline and Primeline Petroleum Corporation.