Devon Energy Commences Oil Production in South China Sea

abarrelfullabarrelfull wrote on 19 Jun 2012 08:47

Oct. 8th 2003

Devon Energy Corporation (Amex: DVN; Toronto: NSX) today announced the commencement of production from its Panyu oil fields. Gross field production is anticipated to reach 60,000 barrels of oil per day in the third quarter of 2004. Production volumes are expected to increase steadily over the next year as the remaining wells are drilled and completed.

Devon drilled the initial discovery well at Panyu in 1998 and a follow-up discovery in 1999. Panyu is located approximately 93 miles offshore Hong Kong in about 320 feet of water in the Pearl River Mouth Basin of the South China Sea. Development required construction and installation of two fixed platforms from which the development wells are being drilled. Oil is produced to a floating production, storage and offloading vessel (FPSO). Sales are expected to begin in the fourth quarter of 2003 when the first shipment of oil will be offloaded from the FPSO and transported to market.

"Development of the Panyu discoveries was a significant engineering project carried out efficiently and quickly by our group," said J. Michael Lacey, Devon's senior vice president of exploration and production. "It has been less than two years since the Chinese government approved our plans. When complete, Devon's share of production from the project should reach 16,000 barrels per day."

Devon Energy China, Ltd. is the Panyu field operator with a 24.5 percent working interest. Other partners are CNOOC Ltd., with a 51 percent interest, and Burlington Resources Inc. (NYSE: BR; Toronto: B), with a 24.5 percent interest.

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