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CNPC, Green Dragon get Greka Chengzhuang approval

By  AOG Staff Sunday, 17 September 2017 04:30
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The China National Development and Reform Commission (NDRC) has approved the overall development plan (ODP) of the Greka Chengzhuang block in the prolific Qinshui basin in China.

Covering 67sq km with proved reserves of approximately 275 Bcf, the block is a 47:53 partnership between Green Dragon Gas and China National Petroleum Corp. (CNPC).

The ODP includes the drilling of an additional 147 production wells to be drilled by yearend 2018, targeting both coal seam #3 and coal seam #15 plays. So far about 114 wells have been drilled on the acreage

The development cost will be US$53.80 million over 2017 and 2018. CNPC will invest $28.51 million and Green Dragon $25.28 million based on its participating interest in the block. Gross production capacity is estimated to be 6.36 Bcf per year.

In July Green Dragon said the NDRC approved the ODP of the Greka Shizhuang South Zaoyuan portion of the main block. This results in the drilling of an additional 42 vertical wells and 47 LiFaBriC wells by 2020.

Image: CNOOC headquarters / CNOOC

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