press release

Chevron Press Release - Chevron Announces Oil Discovery Offshore China

BEIJING, Oct. 13, 1997 - Chevron announced a crude oil discovery in the Pearl River Mouth Basin of the South China Sea today, the first day of the 15th World Petroleum Congress.

The discovery was made by the CACT Operators Group (CACT), whose members include the China National Offshore Oil Corporation, Chevron, Agip and Texaco. As one of China's largest offshore oil producers, CACT has maintained a production level of 100,000 barrels of oil per day since 1995.

The discovery well, Huizhou (HZ) 26-2-1, encountered 39- to 48-degree API gravity crude oil in nine intervals, and successfully tested three geologic zones, yielding crude oil at a combined rate of 7,566 barrels per day. The well was drilled to a depth of 10,988 feet (3,350 meters) in 364 feet (111 meters) of water.

Chevron Chairman Ken Derr said, "I congratulate the partners on yet another discovery offshore China. Our long-term success here can be attributed to the mutual cooperation among the partners and to the dedication of our employees. We're particularly pleased with this discovery because it supports additional exploration opportunities here in China."

HZ/26-2-1 was the first well drilled following a recent 3-D seismic survey, part of an aggressive exploration program currently being conducted by CACT. The new discovery could be developed through the use of existing infrastructure.

Notes to Editors:

  • Agip, Chevron and Texaco formed the ACT Operators Group in 1983 to develop hydrocarbon resources offshore China in the Pearl River Mouth Basin of the South China Sea. ACT drilled its first well in 1984, and made its first commercial discovery in 1985. That discovery subsequently translated into the consortium's first oilfield, Huizhou 21-1, brought on to production in 1990, and followed by a second field, Huizhou 26-1, in 1991, and the third and fourth fields, Huizhou 32-2 and 32-3 in 1995.
  • Effective Jan. 1, 1996, CNOOC formally joined the ACT Operators Group as their fourth partner in the operation of the offshore fields, and the new joint operating group changed its name to the CACT Operators Group. Agip, Chevron and Texaco each hold a 16 1/3-percent interest in the South China Sea oilfields, with CNOOC holding the remaining 51 percent.

Updated: October 1997