Primeline Energy to Enter Second Exploration Phase at East China Sea Gas Block

Primeline Energy Holdings on Thursday said it has agreed with China National Offshore Oil Corp (CNOOC) that it will enter the next and second phase of exploration commitment under the petroleum contract for East China Sea Block 33/07.

This decision follows the completion of Primeline’s evaluation of the 2015 programme which saw a cost effective and smooth drilling operation of two exploration wells -LS23-1-1 and LS30-3-1. Both wells encountered very good sandstone reservoirs as predicted and gas shows, but were not commercial.

By entering into phase two, Primeline has agreed to relinquish 25 percent of the contract area under the petroleum contract. The contract area for Block 33/07 is 4,397 sq km.

Block 33/07 surrounds Block 25/34 where the LS36-1 gas field is located. Any discovery from the block can enjoy the benefit of LS36-1 production facility which has been in production since July 2014, Primeline said.

Primeline has a 100 percent contractor’s interest in, and is the operator of, the petroleum contract with CNOOC for Block 33/07 and a 49 percent interest in the producing LS36-1 gas field in Block 25/34, together with CNOOC (51 percent interest and acting as operator). Both blocks are located in the East China Sea.