60km from the southern coast of China
The Beibu Gulf Project consists of three oil fields in block 22/12, which is located approximately 60km from the southern coast of China and north-west of Hainan Island. The oil resources are located at depths between 25m and 40m.
"CNOOC approved the overall development plan (ODP) and investment plan for the project in 2011. The cost is estimated at $300m."
The project involved development of the three oil fields namely 6.12, 6.12 south and 12.8 west. Companies involved in the Beibu Gulf development are China National Offshore Oil (CNOOC) (51%), Roc Oil (19.6%), Horizon Oil (Beibu) (26.95%), and Oil Australia (Majuko Corp) (2.45%).
In June 2011, Petsec Petroleum sold its assets in the field to Horizon Oil for A$38m. In the second quarter of 2011, CNOOC took over the operator responsibilities on behalf of the Beibu Gulf project joint venture.
CNOOC already has infrastructure and facilities that aided in synergy and cost-efficiency. CNOOC created a subsidiary called the Weizhou Operating Company to operate the project. ROC Oil is responsible for the exploration and appraisal of the Beibu Gulf oil field.
The basic engineering design for pipelines and platform facilities was completed by the third quarter of 2011. First oil was achieved in March 2013 with production meeting the forecasts.
Geology of the oil fields in block 22/12
The waxy crude oil reservoirs range from light to heavy and medium to low-viscous. The geology varies from eocene-age fluvial-lacustrine sandstones of luishagang formation and jiaowei shallow marine sandstones of miocene-age, to Weizhou sandstones of oligocene-age. The Wei 6.12 south field was discovered in 2002 by ROC.