Liuhua 11-1 Development - Field Development Overview
Authors: Bryant Joseph H. , Methvin Jerry R. , Dague Earl E. , Cai Zhu Ming , Kun Wang Han , Brown Jeff R. 
Published: October 2008

The Liuhua 11-I Field in the South China Sea, People's Republic of China, presented significant technical and economic challenges to develop. The field was discovered in January 1987 in 1,020 ft (310 m) water depth in a location with severe environmental conditions and adverse reservoir characteristics. These challenges required that a combination of proven and state-of-the-art technologies be considered during conceptual development planning. The development plan chosen relied on sub sea construction and well completion techniques that were new to the oil industry. The execution of the project required bringing together people from many disciplines and organizations to form a multicultural team on a global scale not normally seen in the industry. The project is ultimately expected to be completed on schedule and significantly under the authorized budget.

Introduction

Amoco Orient Petroleum Company, China Offshore Oil Nanhai East Corporation (CONHE), and Kerr-McGee China Petroleum Ltd. will soon complete the initial development of the largest known offshore oil deposit in the South China Sea. This is Amoco's and Kerr-McGee's first upstream energy development in China. It is the result of many yews of cooperative effort, and is thought by the three companies to be one of the most innovative and cost-effective offshore developments found anywhere in the world. Development of this field is a standard by which future challenging development opportunities will be measured.

Initial exploration drilling occumed in Iate 1986 and the field was discovered in January 1987. The Liuhua Field is located 120 miles (200 km) southeast of Hong Kong in 1, tJ20-ft (310 m) water depth (Fig. 1), It is located in a severe weather environment where numerous typhoons and monsoon conditions occur annually, The heavy crude oil and adverse reservoir conditions presented difficult development challenges. The project was fully authorized in March 1993 by the principles and was budgeted to cost $653MM US with first production forecast for April of 1996. Subsequent to approval of the overall development plan (ODP), Kerr- McGee became a working interest owner in the development project, Based on actual spending and current forecasts, the project costs will total $622MM US and first production will remain on schedule in April 1996.

The history of the field's discovery and follow-up evaluation underscores the value of perseverance in the face of technical and commercial challenges. This underlying theme has been critical to the success of Liuhua,

Background.

Amoco Orient Petroleum Company was awarded Contract Area 29/04, Offshore China in November 1985. After evaluation of preliminary exploration data, the Liuhua 11-1 Field was discovered in January 1987 with the drilling of the Liuhua 1l-l-1A well (Fig. 2). TMs well pump tested at rates of 2,240 bbls of heavy, 210 API crude per day. Production was from 246 ft (75 m) of productive Zhujiang carbonate. The reservoir was determined to overlay a strong aquifer which caused ineftlcient displacement of the crude. The cmde contained little gas, which also limited the natural drive of the reservoir.