Chevron, PetroChina begin Chuandongbei

China

BEIJING, January 11, 2016 – Production began on the Luojiazhai gasfield after eight years of delay at the end of 2015, state-run CNPC announced Monday. The natural gas project is a co-venture between PetroChina, China’s biggest oil producer, and Chevron.

The gasfield is located in the southwest region of Sichuan and Chongqing and was signed to the two oil giants in 2008. Chevron is the operator with a 49-percent stake.

The Sichuan Basin contains high levels of hydrogen sulphide which can heighten operational risks and require higher standards for technical processes.

The Luojiazhai project is the first of three phases and is expected to produce 3 bcm (106 bcf) of gas per year. The entire project, known as Chuandongbei, will cost $6.4 billion and covers a 2,000 square kilometre block. The partners expect to produce 6 bcm (212 bcf) of gas per year upon completion.

Image courtesy of PetroChina