Penglai 19-3/19-9

Penglai 19-3/19-9 Oil Field Profile

Location and Geology

The Penglai 19-3 and 19-9 oil fields are located in Block 11/05 of the Bohai Bay, approximately 235 kilometers southeast of Tanggu, Tianjin, China. The fields are situated in waters with an average depth of about 30 meters.

The oilfields are part of the Miocene lower Minghuazhen and Guantao sandstones, where hydrocarbons were confirmed through the drilling of the Peng Lai 19-3 discovery well and six successful appraisal wells.

Discovery and Development

• Discovery: The Penglai 19-3 oil field was discovered jointly by China National Offshore Oil Corporation (CNOOC) and ConocoPhillips China (COPC) in 1999.
• Development Phases:
  • Phase I: Initiated in December 2002, this phase involved the installation of an early production facility, including a wellhead platform (WHP) tied back to the modified and refurbished Ming Zhu FPSO. The production capacity was up to 40,000 barrels of oil per day.
  • Phase II: Fully operational by 2009, this phase included the installation of the Hai Yang Shi You 117 (Bo Hai Peng Bo FPSO), and the tieback of five WHPs to a central fixed riser and utility platform. Up to 36 miles (58 km) of subsea pipelines were installed. The FPSO has a designed processing capacity of 190,000 barrels of oil per day and a storage capacity of two million barrels.
  • Phase III: Sanctioned in 2015, this phase includes three wellhead platforms (WHP-V, WHP-G, and WHP-K) and a central processing platform. Production from platforms WHP-V and WHP-G started in 2018, with WHP-K planned to come online in 2020.

Production and Facilities

• Penglai 19-3:
  • Production from Phase I began in December 2002.
  • Phase II production started in June 2007 with the wellhead platform C, and the Hai Yang Shi You 117 FPSO began operations in May 2009.
  • The Penglai 19-3/19-9 phase three project includes additional wellhead platforms and is expected to reach a peak production capacity of 58,700 barrels per day by 2020.
• Penglai 19-9:
  • The comprehensive adjustment project commenced production in January 2017, utilizing existing facilities of Penglai 19-3 and adding a new wellhead platform. The project aims to reach a peak production of approximately 13,000 barrels of crude oil per day by 2019.
  • As of December 2019, 57 out of the planned 62 wells were in operation at the field.

Operatorship and Ownership

• The production sharing contract (PSC) for Block 11/05 was signed between CNOOC and ConocoPhillips China in December 1994. CNOOC holds a 51% interest, while ConocoPhillips China holds 49%.
• In July 2014, CNOOC took over the operatorship of the field from ConocoPhillips China.

Incidents and Environmental Impact

• Two oil spill incidents occurred in June 2011, resulting in the spillage of up to 723 barrels of oil and 2,620 barrels of mineral oil-based drilling mud into Bohai Bay. Production was suspended in September 2011 but resumed in February 2013 after approvals and an environmental impact assessment were submitted.

Recent Developments

• Penglai 19-9 Comprehensive Adjustment Project: Commenced production in January 2017, with plans to reach peak production by 2019.
• Penglai 19-3/19-9 Phase Three Project: Sanctioned in 2015, with production starting in 2018 and expected to reach full capacity by 2020.
• Penglai 19-3 Oilfield Area 4 Adjustment/Penglai 19-9 Oilfield Phase II Project: Commenced production in May 2020, involving a new wellhead platform connected to 30 production wells and 16 water injection wells, with an expected oil output of up to 15,681 barrels per day by 2022.

Contractors and Infrastructure

• FPSO Vessels: The Ming Zhu FPSO and the Hai Yang Shi You 117 (Bo Hai Peng Bo FPSO) are key facilities. The Hai Yang Shi You 117 FPSO is notable for its large topside modules and significant processing and storage capacities.
• Wellhead Platforms: Multiple wellhead platforms have been installed, including WHP-C, WHP-V, WHP-G, and WHP-K, among others.
• Contractors: Fluor provided conceptual engineering, front-end engineering and design (FEED), as well as detailed engineering services for phases one and two of the Penglai fields development.