Total to develop South Sulige to tune of $1.5-$2 billion - China

This article is extracted from International Oil Letter, Vol 24 issue 52, published 22 December 2008.

Total has submitted an Overall Development Plan (ODP) to PetroChina after a final investment decision on South Sulige field project in the Ordos Basin was made in November 2008. Initial investment will be US$ 1.5 billion to US$ 2 billion for the Inner Mongolia field, with plans to drill about 2,000 wells at South Sulige over the life of the field, which is projected at 20-25 years. Drilling the wells would account for around 80% of the expenses of developing the field.

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Some of the gas reservoirs at South Sulige are located at depths of around 3,500m. The plan is to start gas production in mid-2011, with a plateau production of about 106 Bcf annually expected by 2014 with upside peak gas production of up to 176.6 Bcf a year. Total has so far spent about US$ 130 million on the South Sulige block since signing a contract of the Sough Sulige PSCA in 2006, including seismic acquisition and appraisal and re-entry well drilling.

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