Offshore Field Development Projects
Peng Lai Peng
Operator:ConocoPhillips
Water Depth:23 m / 76 ft
Region:Asia - Far East
Country:China
Last Updated:Jan 11, 2013    (view update history)
Project Description
The largest oil field offshore China, Peng Lai 19-3 was discovered in the Bohai Bay in May 1999. Located on the 1.6 million-acre (6,475 square-kilometer) Bozhong Block 11/05 in approximately 75 feet (23 meters) of water, Peng Lai consists of heavy oil with an API of 21 degrees.

ConocoPhillips operates the project with a 49% interest, and Chinese NOC CNOOC holds the remaining 51%. ConocoPhillips (then Phillips) acquired the right to explore offshore Block 11/05 in December 1994 by signing a petroleum contract with CNOOC. First discovered in 1999, the Peng Lai 19-3 well was followed by six successful appraisal wells.

Phase I

Development of the massive Peng Lai project was split into two phases. The first phase, known as an early oil ...
The largest oil field offshore China, Peng Lai 19-3 was discovered in the Bohai Bay in May 1999. Located on the 1.6 million-acre (6,475 square-kilometer) Bozhong Block 11/05 in approximately 75 feet (23 meters) of water, Peng Lai consists of heavy oil with an API of 21 degrees.

ConocoPhillips operates the project with a 49% interest, and Chinese NOC CNOOC holds the remaining 51%. ConocoPhillips (then Phillips) acquired the right to explore offshore Block 11/05 in December 1994 by signing a petroleum contract with CNOOC. First discovered in 1999, the Peng Lai 19-3 well was followed by six successful appraisal wells.

Phase I

Development of the massive Peng Lai project was split into two phases. The first phase, known as an early oil production project, helped participants to learn about the field, as well as generate operating money to invest in the project in the second phase of development. In July 2000, participants approved expenditures for this phase, following six discoveries in the area.

Field development in Phase I included the installation of a 24-slot wellhead platform and the installation of a leased FPSO on the field. Moored in waters measuring 102 feet (31 meters) deep, FPSO Bohai Ming Zhu is a newly built barge FPSO. Designed by Worley Parsons, the vessel houses processing and storage facilities, as well as accommodation quarters, power generators and a flare. Specially designed to be able to disconnect and leave the jacket and mooring arm during heavy ice, the Bohai Ming Zhu FPSO is capable of processing up to 45,000 bopd and storing more than 360,000 barrels of oil.

Production from this phase of development commenced in December 2002 with a peak production of 35,000 to 40,000 bopd; production averaged 28,200 bopd in 2006.

Phase II

Approved by the Chinese government on Jan. 17, 2005, Phase II of the field development plan will span six years and includes the fabrication and installation of five wellhead platforms (A-E) with drilling and production capabilities, drilling more than 200 wells, the fabrication and installation of a central riser utilities CPU platform, building and installing one of the world's largest FPSOs, and laying 36 miles (58 kilometers) of subsea pipe to connect the facilities. ConocoPhillips alone committed $1.8 billion to the project, which requires downhole pumps and heated storage.

Fluor was awarded the engineering contract on the second phase of development in May 2001, which included the feasibility studies, FEED, detailed engineering, procurement and construction support services. In order to bring this project to fruition fabrication was undertaken at seven construction yards in three different countries.

The Hai Yang Shi You 117 FPSO is the largest in China, measuring 984 feet (300 meters) long, 197 feet (60 meters) wide and 96.5 feet (29.4 meters) high, and weighing 38,581 tons (35,000 tonnes). The hull was designed by Marine Design & Research Institute of China and built by Shaghai Walgaoqiao Shipbuilding Co. in Shanghai. Fluor designed the topsides modules, and SembCorp built the 15 topside modules, one flare tower and seven pipe-rack modules in a $200 million contract awarded in February 2005. To be moored in 75 feet (23 meters) of water, the vessel, also known as the Peng Bo, has a processing capacity of 190,000 bopd and a storage capacity of 1.8 MMbo.

In September 2003, China Oilfield Services Limited (COSL) was chosen to provide well workover rig service for the Peng Lai project. The contract included building a well workover rig specifically for the Chinese project, as well as rig maintenance services.

While the first phase of development discharged treated produced water into the environment, the second phase of development at Peng Lai is re-injecting the produced water back into the reservoir. Better for the environment, the re-injection of produced water will also increase the amount of oil recovered. An ISO 14001-certified project, this phase also encompasses re-injecting all drill cuttings produced during development drilling.

Phased Production

Production commenced from the second phase of development on Wellhead Platform C in June 2007. Initially, production is being routed through a temporary connection to the Phase I facilities. Fluor designed these flowlines, enabling them to be reused for permanent installation once the new FPSO is installed. Wellhead Platforms A and B were also brought into production in this manner.

Wellhead Platforms D and E are expected to commence after the new FPSO has been installed in 2009. Then, all production from Wellhead Platforms A-E will be permanently diverted to the new FPSO Hai Yang Shi You 117. Once fully operational, this phase of development is expected to produce some 190,000 bopd.

Production Hub

Enabling the infrastructure to serve as a production hub to other fields in the Greater Peng Lai area, the second phase of development incorporates two satellite fields on Block 11/05, and possibly more nearby fields in the future.

Discovered in 2000, Peng Lai 25-6 field is located three miles east of Peng Lai 19-3. The PL 25-6-1 discovery well was drilled in May 2000 and encountered a gross hydrocarbon column of 1,493 feet (455 meters) . The PL 25-6-2 appraisal well confirmed the discovery in February 2001, encountering a gross hydrocarbon column of 1,634 feet (498 meters) in the Guantao formation.

The second satellite field to be connected to the Peng Lai project, Peng Lai 19-9 was discovered in June 2003. Exploration well PL 19-9-1 encountered 102 feet (31 meters) of net hydrocarbon pay.
Activities
Status Updates
Peng Lai Second Phase Development Approved
Type: Operator Update

Jan. 2013 - The second phase of development for the Peng Lai 19-3 and Peng Lai 25-6 oil fields in northern Bohai Bay has been approved by China's National Energy Administration. ConocoPhillips, operator of the Peng Lai fields, had already received approval for Phase 2 but that was put on hold after two discharges occurred within the field in September 2011. In November 2012 the company was asked to submit a revised plan taking into account lessons learned from the events. Second phase of the Peng Lai development consists of five wellhead platforms, a central processing facility and an FPSO.

Peng Lai Field Leaks Small Amount of Oil
Type: Status Update

Jun. 2012 - CNOOC Limited reported that a small amount of oil is leaking from the Penglai 19-3 oil field in the Bohai Bay. A small amount of oil leaked into the sea from the Penglai 19-3 field when a safety device on a hose coupling parted due to an abnormality during an oil transfer operation on June 3. The leak was secured immediately when automatic isolation valves closed. Roughly 0.6 tonnes of oil was released into the sea, said CNOOC.

ConocoPhillips Reaches Settlement Agreement Related to Peng Lai Oil Spill
Type: Status Update

Jan. 2012 - ConocoPhillips and the China National Offshore Oil Corp. have reached an agreement with China's Ministry of Agriculture to resolve issues related to the June 2011 incidents at the Peng Lai 19-3 field in Bohai Bay. The company will make a compensation payment of $160 million to settle public and private claims of potentially affected fishermen and bay communities from the oil spill. ConocoPhillips will also designate a portion of its $16 million environmental fund to improve fishery resources. Peng Lai is located on the Bozhong Block 11/05 in approximately 75 feet (23 meters) of water.

SOA Orders Operations Halt at Peng Lai 19-3 Oil Field
Type: Status Update

Sep. 2011 - China's State Oceanic Administration has ordered ConocoPhillips China to suspend all drilling and production operations at the Peng Lai 19-3 oil field at Bohai Bay, reported Dow Jones. The government agency said ConocoPhillips has been slow to provide information about an oil spill that occurred at the beginning of the summer. However, the oil company said it has submitted a report to the SOA, and believes it satisfied all requirements called for by the agency for cleaning up and investigating the oil spill. SOA disagrees and will not grant governmental approval to move forward with development until ConocoPhillips submits a marine-environmental impact statement. Additionally, while operations are suspended, the oil company must be supervised by its joint-venture partner China National Offshore Oil Corporation, CNOOC, to prevent any further spills or environmental hazards, stated the agency. Reportedly, all leaks were sealed at the field, but residual oil continues to seep from two leaks. Peng Lai is located on the Bozhong Block 11/05 in approximately 75 feet (23 meters) of water. ConocoPhillips operates the project with a 49% interest, and Chinese NOC CNOOC holds the remaining 51%.

Peng Lai Recommences Production after Oil Spill
Type: Status Update

Aug. 2011 - ConocoPhillips has restarted production at 14 production and water-injection wells at the Peng Lai 19-3 oil field in the Bohai Bay. On July 13, the company received government approval to recommence production after the wells were shut-in because of an oil spill. The company stated that the oil spill should be cleaned up by the end of the month. Peng Lai is located on the Bozhong Block 11/05 in approximately 75 feet (23 meters) of water. ConocoPhillips operates the project with a 49% interest, and Chinese NOC CNOOC holds the remaining 51%.

Halliburton Secures Contract from ConocoPhillips for Peng Lai Development
Type: Contract Award

Feb. 2010 - Halliburton's product service line Sperry Drilling received a $40 million two-year contract, plus options, with ConocoPhillips China Inc. Sperry Drilling will provide directional-drilling and logging-while-drilling services on the Peng Lai Development in China's Bohai Bay. Work begins immediately on Peng Lai, which is located on the Bozhong Block 11/05 in approximately 75 feet (23 meters) of water. ConocoPhillips operates the project with a 49% interest, and Chinese NOC CNOOC holds the remaining 51%.

Peng Lai Phase II Project in China to Begin Producing in 2Q
Type: Status Update

Apr. 2009 - Phase II of the Peng Lai Project, the largest oil field offshore China, should commence production soon. During Phase II, ConocoPhillips installed five wellhead platforms with drilling and production capabilities, drilled 200 additional wells, and constructed the world's largest FPSO, Hai Yang Shi You 177. Once the last two platforms, D & E, commence production, the Peng Lai field will increase its production to 50,000 bopd in 2010, and 70,000 bopd in 2011.

Fluor Helps Fire Up Phase 2 Production Offshore China
Type: Production Start

Jan. 2009 - Fluor assisted in the successful startup of production Platform B, one part of Peng Lai (PL) 19-3 blocks' Phase 2 project located in China's Bohai Bay.

Domestically Built FPSO Launched in Shanghai
Type: Status Update

Dec. 2006 - China's first-ever homemade 300,000 tonnage FPSO (floating production storage and offloading) vessel was successfully launched on Dec. 8 in Shanghai. Capable of processing 190,000 barrels of oil per day and storing 2 million tons of oil, the vessel will be used by American oil company ConocoPhillips' phase II oil development in Penglai 19-3, a heavy- crude field in the Bohai Sea.

CNOOC Inks Deal for FPSO Hull Facilities for PL 19-3
Type: Contract Award

Mar. 2005 - CNOOC Limited and ConocoPhillips China Inc have signed a contract with Shanghai Waigaoqiao Shipbuilding for the 280,000 DWT (Dead, Weight, Tonne) floating, production, storage and offloading (FPSO) vessel hull for the PengLai (PL) oil fields. It is the biggest FPSO hull ever built in China.

CNOOC Turns On the Tap at Penglai
Type: Production Start

Dec. 2002 - CNOOC Limited reports that the largest oilfield offshore China, Penglai 19-3, began to pump oil. The first phase of Penglai 19-3 in central Bohai Bay was scheduled to come on stream before year-end.

Production Delayed at Penglai Field
Type: Status Update

Dec. 2002 - CNOOC has pushed back the commencement date of production from the Penglai Field due to technical difficulties with the FPSO. Production from the field was expected to commence in December. The new target date for production is set for early January. When the field does come onstream it is expected to have an initial flow rate between 40,000 to 50,000 barrels per day.

CNOOC to Bring Penglai Field Onstream by Year-End
Type: Status Update

Nov. 2002 - CNOOC Ltd. and partner ConocoPhillips are on scheduled to begin production from the Penglai 19-3 oilfield in the northeast Bohai Sea by the end of the year. Field reserves are estimated at 500 million barrels of oil equivalent. Penglai 19-3 is China's second largest single oilfield after the onshore Daqing oilfield in the northeast.

Phillips Turns on the Tap in China in 2002
Type: Status Update

Dec. 2001 - Phillips will start commercial production at the Penglai 19-3 oilfield in northeast China's Bohai Sea next year. The Penglai 19-3 field would produce an estimated 35,000 to 40,000 barrels of oil per day (bpd), rising to 150,000 bpd by 2006.

Construction Begins on China's Penglai Offshore Field
Type: Facility Construction

Sep. 2001 - Construction of the first phase of Penglai 19-3 Oilfield, the largest offshore oilfield in China, has commenced in the southern Bohai Sea.

Hai Yang Shi You 117 FPSO
Under Construction - Feb 2005 to -

The Hai Yang Shi You 117 FPSO is the largest in China. To be moored in 75 feet (23 meters) of water, the vessel, also known as the Peng Bo, has a processing capacity of 190,000 bopd and a storage capacity of 1.8 MMbo.

Peng Lai Wellhead Platform B
Producing - Under Const. - Sep 16, 2008 to -

Platform B of Phase II of the Peng Lai project came on stream successfully ahead of schedule. Initially, production is being routed through a temporary connection to the Phase I facilities. Once the new FPSO is in place, all production from Wellhead Platforms A-E will be permanently diverted to the new FPSO Hai Yang Shi You 117.

Peng Lai CPU
Producing - Under Const. - Jun 2007 to -

Production commenced from the second phase of development in June 2007. Initially, production is being routed through a temporary connection to the Phase I facilities. In 2009, all production from Wellhead Platforms A-E will be permanently diverted to the new FPSO Hai Yang Shi You 117. Once fully operational, this phase of development is expected to produce some 190,000 bopd.

Peng Lai Wellhead Platform C
Producing - Under Const. - Jun 2007 to -

Production commenced from the second phase of development on Wellhead Platform C in June 2007. Initially, production is being routed through a temporary connection to the Phase I facilities. Once the new FPSO is in place, all production from Wellhead Platforms A-E will be permanently diverted to the new FPSO Hai Yang Shi You 117.

Peng Lai Wellhead Platform A
Producing - Under Const. - 2007 to -

Initially, production is being routed through a temporary connection to the Phase I facilities. Once the FPSO is in place, all production from Wellhead Platforms A-E will be permanently diverted to the new FPSO Hai Yang Shi You 117.

Peng Lai CPU
Under Construction - Jan 17, 2005 to May 2007

Approved by the Chinese government on Jan. 17, 2005, Phase II of the Peng Lai development plan will span six years and includes the fabrication and installation of five wellhead platforms (A-E), a central riser utilities CPU platform, 200 wells, and an FPSO.

Peng Lai Wellhead Platform A
Under Construction - Jan 17, 2005 to 2006

Approved by the Chinese government on Jan. 17, 2005, Phase II of the field development plan will span six years and includes the fabrication and installation of five wellhead platforms (A-E), a CPU platform, 200 wells and another FPSO.

Peng Lai Wellhead Platform B
Under Construction - Jan 17, 2005 to Sep 15, 2008

Approved by the Chinese government on Jan. 17, 2005, Phase II of the field development plan will span six years and includes the fabrication and installation of five wellhead platforms (A-E), a CPU platform, 200 wells and another FPSO.

Peng Lai Wellhead Platform C
Under Construction - Jan 17, 2005 to 2007

Approved by the Chinese government on Jan. 17, 2005, Phase II of the field development plan will span six years and includes the fabrication and installation of five wellhead platforms (A-E), a CPU platform, 200 wells and another FPSO.

Peng Lai Wellhead Platform D
Under Construction - Jan 17, 2005 to -

Approved by the Chinese government on Jan. 17, 2005, Phase II of the field development plan will span six years and includes the fabrication and installation of five wellhead platforms (A-E). Wellhead Platforms D and E are expected to commence after the new FPSO has been installed in 2009.

Peng Lai Wellhead Platform E
Under Construction - Jan 17, 2005 to -

Approved by the Chinese government on Jan. 17, 2005, Phase II of the field development plan will span six years and includes the fabrication and installation of five wellhead platforms (A-E), a CPU platform, 200 wells and another FPSO. Wellhead Platforms D and E are expected to commence after the new FPSO has been installed in 2009.

Peng Lai 19-9
Under Development - Jun 2003 to -

Enabling the infrastructure to serve as a production hub to other fields in the Greater Peng Lai area, the second phase of development on Peng Lai 19-3 incorporates two satellite fields on Block 11/05, and possibly more nearby fields in the future.

Discovery (Drilled) - Jun 2003 to Jun 2003

The second satellite field to be connected to the Peng Lai project, Peng Lai 19-9 was discovered in June 2003. Exploration well PL 19-9-1 encountered 102 feet (31 meters) of net hydrocarbon pay.

Peng Lai Platform (Phase I)
Producing - Dec 2002 to -

Peng Lai is in its first phase of production. Designed to have a maximum production capacity of 40,000 bopd, the first phase of development commenced in December 2002.

Under Construction - 2002 to 2002

Phase I development included one 24-slot wellhead platform and a FPSO facility.

Bohai Ming Zhu FPSO
Producing - Dec 2002 to -

Field development in Phase I included the installation of a 24-slot wellhead platform and the installation of a leased FPSO on the field. Production from this phase of development commenced in December 2002 with a peak production of 35,000 to 40,000 bopd; production averaged 28,200 bopd in 2006.

Under Construction - Jul 2000 to Nov 2002

An early oil production project helped participants to learn about Peng Lai, as well as generate operating money to invest in the project in the second phase of development. In July 2000, participants approved expenditures for this phase, following six discoveries in the area.

Peng Lai 25-6
Under Development - Mar 2001 to -

Enabling the infrastructure to serve as a production hub to other fields in the Greater Peng Lai area, the second phase of development on Peng Lai 19-3 incorporates two satellite fields on Block 11/05, and possibly more nearby fields in the future.

Appraisal Drilling - Feb 2001 to Feb 2001

The PL 25-6-2 appraisal well confirmed the discovery in February 2001, encountering a gross hydrocarbon column of 1,634 feet (498 meters) in the Guantao formation.

Discovery (Drilled) - May 2000 to May 2000

Discovered in 2000, Peng Lai 25-6 field is located three miles east of Peng Lai 19-3. The PL 25-6-1 discovery well was drilled in May 2000 and encountered a gross hydrocarbon column of 1,493 feet (455 meters).

Peng Lai 19-3
Producing - Under Dev. - Jun 2007 to -

Production commenced from the second phase of development on Wellhead Platform C in June 2007. Initially, production is being routed through a temporary connection to the Phase I facilities. Wellhead Platforms A and B were also brought into production in this manner. Wellhead Platforms D and E are expected to commence after the new FPSO has been installed in 2009.

Producing - Under Dev. - Dec 2002 to May 2007

The field is in its first phase of production. First phase designed to have a max prod. capacity of 40,000 boe per day. Phase II development is currently under way and includes the installation of five additional drilling and production platforms, drilling and completing more than 200 wells, and the construction of one of the largest FPSOs in the world.

Under Development - 2002 to Dec 2002

Phase I development included one 24-slot wellhead platform and a FPSO facility.

Appraisal Drilling - 2000 to 2001

Six successful appraisal wells were drilled during this period including PL 25-6 discovered in 2000 which will be developed in conjunction with Phase II. Phase II is scheduled for first production in 2009.

Discovery (Drilled) - May 1999 to 1999

Exploratory Drilling - May 1999 to May 1999

PL 19-3-1

Bright Spot - Dec 1994 to Apr 1999

Phillips (now ConocoPhillips) signed an agreement with CNOOC acquiring the right to explore Block 11/05 in December 1994.

Update History
The SubseaIQ Team works everyday to provide you with the latest information on the offshore field development market. The following table provides you with a detailed record of each addition and update made to this project by the SubseaIQ team.
UPDATE TYPE DATE DAYS AGO
Field Updated Jan 11, 2013 463
Activity Added Jan 11, 2013 463
Activity Added Jun 05, 2012 683
Field Updated Jun 05, 2012 683
Field Updated Jan 25, 2012 815
Activity Added Jan 25, 2012 815
Facility Updated Sep 02, 2011 960
Activity Added Sep 02, 2011 960
Activity Added Aug 18, 2011 975
Project Description Updated Jul 05, 2011 1019
Project Description Updated Jul 01, 2011 1023
Project Description Updated May 05, 2011 1080
Project Description Updated Feb 17, 2011 1157
Project Description Updated Dec 10, 2010 1226
Project Description Updated Feb 17, 2010 1522
Activity Added Feb 16, 2010 1523
Facility Updated Apr 30, 2009 1815
Facility Updated Apr 29, 2009 1816
Activity Added Apr 24, 2009 1821
Project Description Added Jan 14, 2009 1921
Field Added Jan 14, 2009 1921
Facility Status Added Jan 14, 2009 1921
Facility Added Jan 14, 2009 1921
Field Status Added Jan 14, 2009 1921
Field Status Added Jan 13, 2009 1922
Facility Status Added Jan 13, 2009 1922
Facility Added Jan 13, 2009 1922
Field Added Jan 13, 2009 1922
Activity Added Jan 13, 2009 1922
Activity Added Dec 11, 2006 2686
Activity Added Mar 01, 2005 3336
Activity Added Dec 31, 2002 4127
Activity Added Dec 12, 2002 4146
Activity Added Nov 13, 2002 4175
Activity Added Dec 14, 2001 4509
Activity Added Sep 10, 2001 4604

    Project Update History Search - View all the lastest updates made by the SubseaIQ team.
 
Project Map
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Facility Name Bohai Ming Zhu FPSO
Duty Oil
Operator ConocoPhillips
Current Status Producing since 2002
Host Type FPSO
Water Depth 31 m / 102 ft
Dev.Cost n/a
 
Region China
 
Location 11/05
Facility Name Hai Yang Shi You 117 FPSO
Duty Oil
Operator ConocoPhillips
Current Status Under Construction since 2005
Host Type FPSO
Water Depth 23 m / 76 ft
Dev.Cost n/a
 
Region China
 
Location 11/05
Facility Name Peng Lai CPU
Duty Oil
Operator ConocoPhillips
Current Status Producing - Under Const. since 2007
Host Type Fixed Platform
Water Depth 23 m / 76 ft
Dev.Cost n/a
 
Region China
 
Location 11/05
Facility Name Peng Lai Platform (Phase I)
Duty Oil
Operator ConocoPhillips
Current Status Producing since 2002
Host Type Fixed Platform
Water Depth 23 m / 76 ft
Dev.Cost n/a
 
Region China
 
Location 11/05
Facility Name Peng Lai Wellhead Platform A
Duty Oil
Operator ConocoPhillips
Current Status Producing - Under Const. since 2007
Host Type Fixed Platform
Water Depth 23 m / 76 ft
Dev.Cost n/a
 
Region China
 
Location 11/05
Facility Name Peng Lai Wellhead Platform B
Duty Oil
Operator ConocoPhillips
Current Status Producing - Under Const. since 2008
Host Type Fixed Platform
Water Depth 23 m / 76 ft
Dev.Cost n/a
 
Region China
 
Location 11/05
Facility Name Peng Lai Wellhead Platform C
Duty Oil
Operator ConocoPhillips
Current Status Producing - Under Const. since 2007
Host Type Fixed Platform
Water Depth 23 m / 76 ft
Dev.Cost n/a
 
Region China
 
Location 11/05
Facility Name Peng Lai Wellhead Platform D
Duty Oil
Operator ConocoPhillips
Current Status Under Construction since 2005
Host Type Fixed Platform
Water Depth 23 m / 76 ft
Dev.Cost n/a
 
Region China
 
Location 11/05
Facility Name Peng Lai Wellhead Platform E
Duty Oil
Operator ConocoPhillips
Current Status Under Construction since 2005
Host Type Fixed Platform
Water Depth 23 m / 76 ft
Dev.Cost n/a
 
Region China
 
Location 11/05
 
Field Name Peng Lai 19-3
Discovery Date May 1999
Block 11/05
Reserve Type Oil
Current Status Producing - Under Dev.
Production Start
Water Depth 23 m / 76 ft
Field Name Peng Lai 19-9
Discovery Date Jun 2003
Block 11/05
Reserve Type Oil
Current Status Under Development
Production Start
Water Depth 23 m / 76 ft
Field Name Peng Lai 25-6
Discovery Date May 2000
Block 11/05
Reserve Type Oil
Current Status Under Development
Production Start
Water Depth 23 m / 76 ft