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CNOOC Starts Production in Ledong Gas Field

Source: www.gulfoilandgas.com 9/7/2009, Location: Asia

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CNOOC Limited announced that Ledong (LD) 22-1, an independent gas field of the Company, has successfully commenced production. Currently, it is producing approximately 30 thousand cubic feet of natural gas per day via 5 wells.

About 47 kilometers eastern of the producing field Yacheng 13-1 and 20 kilometers western of LD 15-1 gas field, LD 22-1 is located in the Yinggehai Basin of the Western South China Sea. The average water depth is about 93.5 meters.

LD 22-1 is jointly developed with LD 15-1. The major development facilities of LD22-1 include an eight-legged platform and 13 production wells while LD 15-1 has an eight-legged platform and 8 production wells. The two fields will share part of subsea production facilities in order to reduce the production cost.

After being further processed at the Dongfang 1-1 gas terminal, natural gas from LD 22-1/15-1 will be piped to customers in Hainan province including refinery plant, chemical plant and city gas.

Peak production of LD 22-1/15-1 is expected to be around 150 mmcf per day. LD 15-1 will commence production later this year in order to match the customers’ need.

On full-scale production, LD 22-1/15-1 will become the second biggest independent gas field of the Company offshore China.

Mr. Yuan Guangyu, Executive Vice President of the Company said: “With the successful startup of LD 22-1/15-1, we will further enhance the gas production in the Western South China Sea, which is the Company’s most important natural gas producing area. In the meanwhile, we can supply more clean energy to facilitate the local economic growth."

CNOOC limited acts as the operator and has 100% interest in the field.

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