Phillips Unit, Union Texas Announce Another Discovery in China's Bohai Bay

Article excerpt

BARTLESVILLE (JR) -- Phillips China, a unit of Phillips Petroleum, and Union Texas Bohai announced a second oil discovery Tuesday in the Bozhong Block of China's Bohai Bay.

The new discovery is 35 miles southwest of a discovery announced in November.

The Bozhong 36-2-1 well was drilled to a total depth of 8,491 feet in 69 feet of water. Drill-stem tests over a 652-foot interval, within a gross hydrocarbon column of 1,909 feet, flowed oil at a maximum rate of 2,262 barrels per day. Test rates were limited by testing facilities on the drilling rig. The well was plugged and abandoned. The Bozhong 36-2-1 well was drilled in the south central sector of the 2.3-million-acre block in the Gulf of Bohai, 240 miles southeast of Beijing. Phillips China is the operator with a 60 percent interest; Union Texas Bohai, a unit of Union Texas Petroleum, holds the remaining 40 percent. China National Offshore Oil has the right to acquire up to a 51 percent interest in any proposed development. Phillips acquired the right to explore the Bozhong Block in 1994 when its China unit signed a petroleum contract with China National Offshore. …