PetroChina and Shell China Exploration and Production Company (Shell) recently announced that they are jointly proceeding with the development of the Changbei natural gas field in
Shell, which will be the operator of the project under a Production Sharing Contract with PetroChina, signed drilling contracts and Letters of Intent (LOI) last week for the award of Engineering, Procurement and Construction (EPC) contracts for the field development.
This marks the start of development of the field, which is expected to start delivering 1.5 billion cubic metres per annum (cm/pa) of natural gas to markets in
Total development costs for the full lifecycle of the project will be about $600 million, covering the construction of the central processing facilities, inter-field pipelines and development drilling of about 50 horizontal and multilateral wells over 10 years.
The contract for the drilling rigs and associated services covering the drilling of about 30 wells over the next six years was awarded to the No. 1 Drilling Company of Liaohe Petroleum Exploration Bureau. A four-year directional drilling contract was awarded to Halliburton Energy Services (
A consortium comprising China Petroleum Engineering Company, Southwest Company and Sichuan Petroleum Engineering Construction Company signed an LOI for the EPC contract for the central gas processing facility. China Liaohe Petroleum Engineering signed an LOI for the EPC contract for the inter-field pipeline infrastructure.
A second Shaan-Jing pipeline for transporting the gas to