Primeline Energy Holdings has started commercial production at its LS36-1 gas field, offshore China, trial production having been completed.
The production period under the Petroleum Contract for Block 25/34 has accordingly started.
The Joint Management Committee (JMC) established by China National Offshore Oil Corporation (CNOOC), the Primeline Energy and Primeline Petroleum Corp. (PPC) for Block 25/34 has agreed that the commissioning and trial production of the LS36-1 gas field has been completed and declared the start of commercial production.
The production period for the LS36-1 gas field is confirmed to have started with effect from December 1, 2014 and the production area for LS36-1 gas field is confirmed to be the same as the development area, being 84.7 sq. km. A JMC resolution was signed to that effect on December 17, 2014.
Primeline says that in accordance with the Petroleum Contract and Supplemental Development Agreement entered into with CNOOC, the Production Period for the LS36-1 Gas Field will be for a minimum of 15 years from the beginning of commercial production and may be extended by agreement between the parties in the event that additional gas resources are discovered by the parties which can be conveniently tied into, transported and processed using the production facility.
The LS36-1 gas field has been in trial production since July 2014. Gas production has been steady since early September and the average production from early November has been 763mcmpd, or 26.7mmcfpd, above the design level of 26mmcfpd in the Overall Development Programme.