11
2013
CPC
Exploration & Production
To obtain a controllable and stable oil supply, CPC has engaged in sole-risk operations with foreign governments
and cooperative exploration with other state-owned petroleum companies or large international oil companies
under the name of the Overseas Petroleum and Investment Corp. (OPIC). These exploratory operations have
continued for many years, covering the Americas, the Asia-Pacific region and Africa.
CPC has put much effort into development of upstream exploration to both secure its own oil sources and reduce
the impact of recent fluctuations in international oil prices, thereby also enhancing its overall performance. In line
with the government's policy of "deepening the safety mechanism of energy supply and promoting international
energy cooperation," CPC has been fully engaged in international cooperation in exploration and development
in the hope of discovering new reserves of oil and natural gas. By the end of 2012, CPC - in cooperation with
international oil companies - was engaged in exploratory activities in 22 concession areas distributed among
eight countries: Block 16 and 17 in Ecuador; Sanga Sanga, Bulungan, Arafura Sea, and Sanga Sanga coal
bed methane (CBM) in Indonesia; Gulf of Paria East and Gulf of Paria West in Venezuela (where negotiations
regarding the confiscated prospects are in progress); Block AC/P21 and NT/P76 in Australia; Bougere Central,
Cutthroat A, Big Horn, Shorts Creek, Danube, Yellowstone, S. Bancroft, NW Bearhead Creek, and East Skinner
Lake Blocks in the United States; the Murzuq 162 Block in Libya; the BCO III/BCS 11/BLT I Blocks in Chad; and
the Haute Mer A Block in Republic of Congo.
The budget for the Agadem block in Niger
was approved by the Legislative Yuan in
December 2012. Due diligence is currently
being arranged and will soon be in process.
In LNG procurement, CPC continues to
seek opportunities for upstream acquisition
of Australian natural gas fields and is
negotiating with Inpex, Shell and others on
purchase prices and contract content. The
budget for the Prelude FLNG field has been
approved by the Legislative Yuan, and the
budget for Ichthys LNG is being submitted to
the Executive Yuan for approval. The Haute-
Mer A Deepwater Block in the Republic
of Congo was approved by their Ministry
of Petroleum on November 23, 2012 with
drilling of the first exploratory well set to begin
in March 2013.
Blocks 16 and 17 in Ecuador; Sanga Sanga
in Indonesia; and Big Horn, Shorts Creek,
Danube, Yellowstone, S. Bancroft, and NW
Bearhead Creek in the U.S.A. are all fields
in production. CPC operates in Libya, and –
now that the turbulence there has subsided -
is applying to the National Oil Corporation for
an extension period of two years to complete
its third obligation well. In Chad, the Karin-1
well was abandoned due to high (over
90%) water saturation; the Benoy-2 well
was spudded-in on October 21, 2012 and
formation testing was scheduled to be under
way by the end of January 2013.
Upstream Operations
Upstream Operations
