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A Leakage Found in Zhuhai Terminal’s Subsea Pipeline

Source: www.gulfoilandgas.com 12/19/2011, Location: Asia

CNOOC Limited announced, its subsidiary Zhuhai Hengqin gas processing terminal (“Zhuhai Terminal”) received notification from Zhuhai Maritime Safety Administration (“Zhuhai MSA”) that a leakage was found in the nearby subsea gas pipeline of the Zhuhai Terminal.

After the incident occurred, CNOOC Limited Shenzhen Branch immediately launched the subsea pipeline leakage emergency plan and shut down the production of relevant platforms of PY30-1 and HZ21-1 fields. Currently the terminal is under accelerated depressurization process. This incident neither caused any injuries nor environmental pollution, and the situation is under control.

To deal with this incident, the Company has endeavored to release the natural gas remained in the pipeline, to monitor the situation closely, and to set up alert zone around the area where the incident took place, as well as to seek other preventive measures. The Company has already through the Zhuhai MSA emitted the navigation warnings, evacuated adjacent vessels, and through the local government notified the nearby residents that might be affected.

Due to this incident the Company's net production will be affected by approximately 160 mcf per day (around 26,700 boe per day).

The cause of the incident is still under investigation. The Company will actively study and come up with solutions to repair the pipeline, in order to resume the operation of the Zhuhai Terminal as soon as possible.

Zhuhai Terminal, located in Hengqin island of Zhuhai city, is the gas processing terminal for the joint development gas project of PY30-1 gas field and HZ oil field.

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