press release

Texaco Press Release - CACT Adds Production from Group's First Subsea Tie-back in the South China Sea

FOR IMMEDIATE RELEASE: WEDNESDAY, FEBRUARY 3, 1999.

BEIJING, PRC, Feb. 3 - Texaco announced today that the CACT Operators Group, which includes Texaco, Agip, Chevron and the China National Offshore Oil Corporation (CNOOC), has commenced production from the new Huizhou 32-5 Field in the Pearl River Mouth Basin of the South China Sea.

The Huizhou 32-5 Field was discovered in September of 1996, and is expected to reach peak production early in the second quarter of 1999, adding some 27,000 barrels of oil per day (bpd) to CACT's current production of 90,000 bpd. This production level will position CACT as the largest offshore oil producer in China.

The Huizhou 32-5 Field is located approximately 60 kilometers southeast of Hong Kong and is the first project in the South China Sea to utilize a subsea tie-back to an existing production platform. The 40-degree API gravity crude is produced through three subsea wells in 113 meters of water. These subsea wells are tied back, approximately 3.5 kilometers, to the Huizhou 26-1 platform through three 6-inch insulated production flowlines. Production is remotely controlled from the platform using an electro-hydraulic control umbilical. A gas lift line is provided to supply gas from the platform to the wells for artificial lift.

Importantly, CACT was able to reduce the cycle time of this project -- from startup to first oil -- to just 19 months. The project utilized equipment and contract services from Europe, the United States, Canada, Australia, Singapore and China. Each of the CACT member companies contributed technical and project expertise to ensure the successful execution of the project

NOTE TO EDITORS:

  • Texaco, Agip and Chevron 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 was developed into the consortium's first oilfield, Huizhou 21-1, brought into production in 1990; it was followed by a second field, Huizhou 26-1, in 1991; and by third and fourth fields, Huizhou 32-2 and 32-3, in 1995.
  • Effective January 1, 1996, CNOOC formally joined the ACT Operators Group as the fourth partner, and the new joint operating group changed its name to the CACT Operators Group, Texaco, Agip and Chevron each holds a 16-1/3 percent interest in the South China Sea oilfields, with CNOOC holding 51 percent.

Updated: February 1999