press release

Chevron Press Release - Chevron Announces Two Discoveries In South China Sea

This is news concerning Chevron but issued by a Chevron subsidiary, and archived here for record purposes.

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BEIJING, June 12, 2001 -- Chevron and its partners in the CACT Operators Group today announced that they have drilled two discovery wells which identify separate oilfields in the northern portion of Block 16/19 in the Pearl River Mouth Basin of the South China Sea.

The first discovery well, designated HZ 19-3-1, was drilled in waters 100 meters (328feet) deep to a depth of 3,344 meters (10,972 feet), and encountered multiple oil-bearing zones. Three representative zones were tested and yielded crude oil at a combined rate of 6,403 barrels of 40-degree API gravity crude oil per day.

The second discovery, HZ 19-2-1, was also drilled in 100 meters of water to a depth of 3,875 meters (12,713 feet), and also encountered multiple oil-bearing zones. A single zone was tested, yielding 46-degree API gravity crude oil at a rate of 4,700 barrels per day.

The potential of both discoveries is currently being evaluated and an appraisal well was spud June 4. Pending the results of the evaluation and determination of their commercial viability, both new oilfields could be developed utilizing existing infrastructure -- an economic plus that would also enable the two new fields to be brought onto production in a relatively short period of time.

"We're delighted with these two new discoveries," said Peter Robertson, president of Chevron Overseas Petroleum, Inc., adding that the CACT Group has been operating in the South China Sea for almost 20 years and was the first international partnership to discover and produce oil in the region. "The Pearl River Mouth Basin has proven to be a valuable commercial asset, and these two new discoveries will certainly enhance the economic potential of the area."

The CACT Operators Group is an international consortium of companies devoted to exploring for and developing hydrocarbon reserves in China's Pearl River Mouth Basin. The member companies -- CNOOC LIMITED, Agip China B.V., Chevron Overseas Petroleum Ltd. and Texaco China B.V. -- remain China's largest offshore oil partnership with production of approximately 100,000 barrels of oil per day.

Notes to editors:

  • The ACT Operators Group was formed in 1983 by Agip, Chevron and Texaco to explore for and develop hydrocarbon resources in the Pearl River Mouth Basin of the South China Sea. A fourth member, CNOOC LIMITED, joined the group in 1996, and the consortium was henceforth known as the CACT Operators Group.
  • The Group drilled its first well in 1984 and made its first commercial discovery in 1985, a discovery which established the presence of the Group's first oil field, Huizhou 21-1. The field was brought onto production in 1990, followed by a second field, Huizhou 26-1, in 1991. Two more fields were brought onto production in 1995: Huizhou 32-2 and 32-3. Four years later in 1999 the fifth field, Huizhou 32-5, was brought onto production as the first subsea tie-back installation in China.
  • CNOOC LIMITED holds a 51 percent interest in CACT's South China Sea oilfield operations. The remaining 49 percent is shared between Agip, Chevron and Texaco, with each holding 16.33 percent.

Updated: June 2001