HONG KONG--(BUSINESS WIRE)--Brightoil Petroleum (Holdings) Limited (“Brightoil Petroleum” or the “Group”; stock code: 933.HK) is pleased to announce that its two wholly owned subsidiaries will conclude agreements with the Second Exploration Branch of PetroChina and the Sixth Exploration Branch of China Petroleum & Chemical Corporation on the new drilling and ground project construction for the Tuzi and Dina 1 Gas Fields in Xinjiang. Upon completion of the aforementioned projects, the aggregate annual production of both fields will increase by 500 million cubic meters (“cbm”), boosting the Group’s competitiveness strengths in upstream operations and generating substantial revenue.
According to the May 14, 2015 resolution of the Joint Management Committee for Dina 1 and Tuzi Gas Fields, construction work for the Tuzi 103 platform and ground facilities will start with five new gas wells to be built. When the platform becomes operational, the daily production of Tuzi Gas Field is expected to increase by 800,000 cbm. Meanwhile, demonstrations for repairs and operational work for the Dina 11 well at the Dina 1 Gas Field will start, and efforts will be made to resume its production before August 2015. If this project goes smoothly, the daily production of Dina 1 Gas Field will be increased by 200,000 cbm.
The resolution also proposed that preparation work for the exploration adjustment plan for Dina 1 Gas Field and reporting will be carried out in line with the current gas reservoir research and reserve review. At the same time, preparation of drilling will be started for the new Dina 1-3 well. If the exploration adjustment plan is successfully implemented and the Dina 1-3 well becomes operational, the daily production of Dina 1 Gas Field will grow by 500,000 cbm. The exploration adjustment plan is subject to the final approval of China National Petroleum Corporation.
Dr. SIT Kwong Lam, Chairman of Brightoil Petroleum, said, “The Group has been actively expanding its upstream business, with a view to become one of the leading resources-based energy conglomerates in the world. To achieve this goal, we are actively looking for various ways to enhance the competitive strengths of our upstream business by bolstering our oil and gas reserves and production, to build a solid foundation for our sustainable growth. If the aforementioned projects are successfully implemented, our upstream business will enjoy phenomenal growth. Going forward, in the face of the complex and volatile energy market, the Group will continue to look for suitable acquisition targets, in particular premier gas assets, and strive to deliver greater returns to shareholders.”
About Brightoil Petroleum
Brightoil Petroleum (Holdings) Limited is a resource-based energy enterprise focusing on upstream oil and gas resources exploration, along with further developments midstream and downstream. The Group is principally engaged in the exploration, development and production of Upstream Oil and Gas Fields, Marine Transportation, Oil Storage and Terminal Facilities and International Trading and Bunkering Business.
The Group has three oil and gas field projects in its portfolio, including Dina 1 Gas Field, Tuzi Gas Field and Caofeidian Oil Field in Bohai Bay. The Company's interest in 2P reserves is expected to reach approximately 93.9 million barrels of oil equivalent. When all these three areas are in full operation, Dina 1, Tuzi and Bohai will reach a daily net production of approximately 25,000 barrels of oil equivalent, and an annual net production of approximately 9 million barrels of oil equivalent.
The Group currently operates four Aframax Oil Tankers and five VLCCs, and has a total capacity exceeding 2 million metric tonnes.
The Group’s oil storage facility on Waidiao Island in Zhoushan, with a total capacity of 3.16 million cubic meters, is under construction. The terminal facility will be equipped with 13 berths which can accommodate vessels from 1,000 to 300,000 deadweight tonnage. Meanwhile, the Group’s oil storage facility on Changxing Island in Dalian, with a total capacity of 7.19 million cubic meters, is also under construction. The terminal facility will be equipped with 13 berths to accommodate vessels from 1,000 to 300,000 deadweight tonnage.
The Group is one of the largest marine bunkering service providers in China with services expanded to global ports. The Group’s tradable range of products is diversified into fuel oil, crude oil, gas oil, as well as petrochemical and the related petroleum products.
The Group will continue to develop its Upstream business by stretching its tentacles into the exploration, development and production of oil fields with a view to becoming one of the leading resources-based energy conglomerates in the world.
Brightoil Petroleum has been included in the Hang Seng MidCap Index, effective from 9 March 2015.
For additional information about Brightoil Petroleum, please visit the Company’s website at www.brightoil.com.hk.