Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Texaco (TX) -- Ignore unavailable to you. Want to Upgrade?

To: Urlman who wrote (98)	9/21/1998 6:58:00 PM
From: Terry Lyon	Read Replies (1) \| Respond to of 143

Here is very interesting news for TX: Friday September 18, 1:47 pm Eastern Time ARCO, Texaco to develop 2nd largest Chinese oilfield with CNOOC (Updates, adding background and details) NEW YORK, Sept 18 (Reuters) - Atlantic Richfield Co. (ARCO) (NYSE:ARC - news) and Texaco Inc. (NYSE:TX - news) said Friday they will develop China's second largest oilfield with state-owned Chinese National Offshore Oil Corp. (CNOOC). The Qinhuangdao field, located in Bohai Bay about 250 kilometers (155 miles) southeast of Beijing, is estimated to contain more than a billion barrels of oil, with about 200 million barrels commercially recoverable using current technology. CNOOC will be field operator a 51 percent interest, while U.S.-based oil majors ARCO and Texaco each will have a 24.5 percent interest. The three companies said in a statement that they expect to have agreed on a development plan by year end. Oil production is scheduled to begin in 2001 -- two years ahead of the estimate given by the Chinese last month -- and reach a sustainable rate of 60,000 barrels per day (bpd) in 2002. The Bohai Bay QHD 32-6 field, which was discovered in 1995, lies under 20 meters (65 feet) of water in Bohai Bay. Lin Shaodong, chief executive officer of the Chinese Offshore Oil Bohai Corp. (COOBC) said last month that oil from Qinhuangdao 32-6 and the other large Bohai discovery -- Nanbao 35-2, which lies just 20 kilometers away with proven reserves estimated at 700-800 million barrels -- will be piped inland through the port of Jingtang in Tangshan City in Hebei Province. The Chinese have said they expect the two fields to be jointly developed. According to Lin Shaodong, overall construction costs for both fields are estimated at 7.29 billion yuan, or about $880 million. Development is expected to include seven standard platforms in the two oilfields, two seabed pipelines to transport oil inland and terminals in the Port of Jingtang. Chinese officials have said they expect Nanbao to commence production a year after Qinhuangdao, with the two oilfields expected to produce over 80,000 barrels per day. ARCO said that it was up to the CNOOC to decide who its Nanbo partners would be. ''There is not at this time any linkage,'' said ARCO spokesman, Albert Greenstein. He also said ARCO was unable to comment on project costs at this time. ($1 = 8.3 yuan)