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ABSTRACT: Changbei integrated gas project, Ordos Basin, China

Feast, Nick1, and Jinhua Fu2
(1) Shell Exploration (China) Limited, Beijing, China 
(2) Changqing Petroleum Exploration Bureau, EP Institute, Xian, China

A production sharing contract was signed on September 23rd, 1999 between Shell Exploration China Limited (SECL) and China National Petroleum Corporation (CNPC) to jointly develop gas from the Changbei Block, which covers an area of 1588km2 in the Ordos Basin, northern-most part of Central China. The contract has a two year evaluation period to allow Shell and its partner, CQPEB, to evaluate the productivity of the reservoirs, recoverable reserves and submit an Overall Development Program for approval. Also, to be completed prior to Shell making any investment decision are the conclusion of arrangements for gas transport and the finalisation of gas sales contracts. The Changbei PSC represents the first major integrated onshore gas development project for a foreign company in China with investment anticipated in all stages of the gas value chain from production through transportation to power generation.

The primary gas bearing reservoir is the Permian Shanxi Formation which occurs at a depth between 2700m and 2900m and comprises quartz and lithic arenites deposited in a fluvial-deltaic setting. The grossly correlateable sand body extends over an area exceeding 60km by 10km, elongated in an approximate north-south direction. Subsurface data includes numerous vertical wells, 2D seismic and gas tests. Additional data to resolve subsurface uncertainties (reservoir productivity and reserves) should be obtained from activities planned for years 2000 and 2001 including extended well testing, trial production, further appraisal drilling and implementation of new technology. The interpretation of this dataset in the context of future gas field development will be presented.

AAPG Search and Discovery Article #90913©2000 AAPG International Conference and Exhibition, Bali, Indonesia