China Oilfield Service to Drill Two Wells for Primeline in East China Sea

Primeline Energy Holdings has entered into a contract with China Oilfield Service Ltd (COSL) for its 2015 exploration programme of two wells in Block 33/07 in the East China Sea.

Under the terms of the drilling contract, COSL has agreed to drill two wells for Primeline on a turnkey basis to the depth and target zone specified by Primeline, according to a statement by Primeline.

If hydrocarbons are discovered, COSL will also conduct tests for Primeline either on a turnkey basis or as a day rate operation as selected by Primeline. The company has decided to drill LS23-1-1 as the first well and, depending on the results, will then drill either location LS23-2-1 or LS30-3-1 as the second well.

“This two well drilling campaign is part of the rolling development programme Primeline and CNOOC are implementing in the southern part of East China Sea following the completion of development of LS36-1 gas field. Now that LS36-1 gas field is in production, thereby establishing a production hub and access to market, Primeline intends to speed up the exploration programme in order to discover more resources in the nearby area to capitalize the infrastructure and access to market. Any additional resources that are discovered in the area nearby LS36-1 in Block 33/07 can share the infrastructure so any future incremental development will be quick and cost effective,” Primeline said on Monday.

Three possible drilling locations along the western margin of the Lishui basin with multiple target zones have been selected. In 2010, Primeline discovered gas in well LS35-3-1 which proved the migration of hydrocarbon into prospects in the western margin area.