Texaco Press Release - Texaco and Arco Sign Contract with China National Offshore Oil Corporation
FOR RELEASE: FRIDAY, SEPTEMBER 18, 1998
BEIJING, PRC, Sept. 18 - Texaco China B.V., a wholly owned subsidiary of Texaco Inc., and ARCO China, Inc., a wholly-owned subsidiary of Los Angeles-based ARCO, have entered into a new petroleum contract with the Chinese National Offshore Oil Corporation (CNOOC) to develop China's second largest offshore oil field, the Qinhuangdao (QHD) 32-6 field in the Bohai Bay.
Discovered by CNOOC in 1995, the QHD 32-6 field is located approximately 250 kilometers (155 miles) southeast of Beijing in the Bohai Bay. The field lies 20 kilometers (12 miles) offshore in 20 meters (65 feet) of water. CNOOC will be operator of the field with a 51 percent interest. ARCO and Texaco each have a 24.5 percent interest.
The three companies expect to complete the formal development plan by year end. Startup of the field is planned for mid-year 2001, with production reaching a sustainable rate of 60,000 barrels per day in 2002. Oil in place at QHD 32-6 is estimated to exceed one billion barrels.
"Both Texaco and Arco are very pleased with the complementary strengths and core competencies that each party brings to this major commercial venture," said Texaco China B.V. President Sam Snyder. "This contract represents a new age of cooperation with China."
ARCO China, Inc. President Jim Weeks added, "We are pleased to participate in this development. Texaco has been in the Bohai Bay since 1990 and brings a wealth of experience to this partnership. Both Texaco and ARCO have successfully cooperated with CNOOC on many ventures in China over the years."
ARCO China currently operates China's largest offshore natural gas field, Yacheng 13-1, near Hainan Island in the South China Sea. Texaco China is part of the CACT Operators Group which operates the Huizhou oil fields in the Pearl River Mouth area of the South China Sea.
Updated: September 1998