Page 11 - AsianOil Week 09

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CNPC brings 99% of production back online
PERFORMANCE
STATE-OWNED China National Petroleum Corp. (CNPC) has said it has brought its oil and gas production levels back to 99% of capacity, fol- lowing the coronavirus (COVID-19) outbreak.
The COVID-19 epidemic has left millions of Chi- nese in quarantine, with the country closing schools and factories while also implementing severe travel restrictions to stop the spread of the virus.
CNPC said on March 3 that 838 of the country’s state-ownedpetroleumproducers–mostofwhichare subsidiaries of CNPC, Sinopec and China National Offshore Oil Corp. (CNOOC) – had resumed opera- tions as of February 26.
The state-owned major said listed arm Pet- roChina had established more than 4,800 epidemic prevention and control units across the group’s sub- sidiaries. The move was in response to the central government’s order to reduce the risk of COVID- 19 transmission among staff whilst also maintain- ing oil and gas output.
ItnotedthatPetroChinahadbrought124drillingrigs backonlineattheDaqingoilfieldcomplexinnorth-east- ernChina’sSongliaoBasinasofFebruary29.
While Liaohe Oilfield reduced staff levels, CNPC said the company had still managed to increase oil production from more than 10,000 wells to reach 27,000 tonnes (198,000 barrels) per day. Liaohe is a mature field and CNPC has been striving to maintain the complex’s output at 10mn tonnes per year (tpy, 200,000 bpd) after decades of development. In June 2018, the company said it aimed to drill 690 new wells that year to add 1.06mn tpy (21,300 bpd) of new capacity.
CNPC said PetroChina had restarted work on 82% of its upstream projects currently under con- struction and added that of the 32 oil and gas projects the unit had resumed work at, 10 of those were con- struction projects.
The major said staff at Kunlun Energy had been working around the clock to help nearly 100 com- panies across the natural gas value chain resume production and supply. It noted that gas sales had climbed to 500mn cubic metres after hitting a low of 460 mcm on February 14.™
OCEANIA
ConocoPhillips awards final equipment contracts for Barossa project
PROJECTS & COMPANIES
US super-major ConocoPhillips has awarded contracts for the supply and installation of subsea infrastructure at the Barossa natural gas and condensate project offshore Australia’s Northern Territory.
The infrastructure is the last major facilities commitments required before the project’s part- ners reach a final investment decision (FID), junior partner Santos said on March 3.
ConocoPhillips operates the project with a 37.5% interest, South Korea’s SK E&S owns 37.5% and Santos owns the remaining 25%. Santos agreed to buy ConocoPhillips’ operated interests in the Darwin LNG project as well as the Bayu-Undan, Barossa and Poseidon offshore gas projects in October 2019.
Santos said at the time that it had agreed to pay $1.39bn for the assets as well as a $75mn con- tingent payment subject to an FID on Barossa. The transaction is waiting to be finalised.
The Australian developer said this week that Aker Solutions would supply Barossa’s subsea umbilicals while National Oilwell Varco Denmark would supply the flexible risers. Subsea 7 was awarded the contract to transport and install all of the umbilicals, risers and flowlines as well as supply the in-field flowlines.
Santos managing director and CEO Kevin Gallagher said the contracts were the final stages of the project’s front-end engineering design (FEED) phase.
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