In May 1999, working with the China National Offshore Oil Company (CNOOC), we made our most significant discovery to date – China’s largest offshore oilfield, the Peng Lai (PL) 19-3 field within the 1.6m acre Block 11/05 of Bohai Bay.

ConocoPhillips is operating the cooperative exploration and development of both the PL 19-3 and the PL 25-6 fields. Phase I development, which began in December 2002, averaged a gross production of approximately 25,000 BOPD. It utilized one wellhead platform, leased floating production and a storage and offloading facility (FPSO).

A development program for Phase II was officially approved by the Chinese government in January 2005. Its detailed design engineering and construction required multiple wellhead platforms, central processing facilities and a new, larger FPSO. The resulting development would be capable of processing 190,000 barrels of oil per day.

ConocoPhillips’ first field offshore China to go into produc¬tion was Xijiang 24-3 in the South China Sea in 1994. The second, Xijiang Field 30-2, came onstream a year later. In 1997, ConocoPhillips developed a third field, 24-1, a satel¬lite located about five miles from the 24-3 Platform. The three oil fields are located about 80 miles from Hong Kong in the South China Sea. Under the terms of the contracts, ConocoPhillips’ ownership rights in the 24-3 and 24-1 fields ended in January 2010, and rights in the 30-2 Field ended in November 2010.

ConocoPhillips also holds a 24.5 percent working interest in Block 15/34 in the South China Sea. This block contains three oil fields, Panyu 4-2, Panyu 5-1 and Panyu 11-6, operated by CNOOC Ltd., which produced 11 MBD net crude oil in 2010.