RH Petrogas’ Gets Green Light on Fuyu 1 Block
The approved ODP allows KRL to operate and drill up to 1,008 wells in Fuyu 1 Block over a course of five years.
RH Petrogas Limited, which is engaged in the business of exploration, development and production of oil and gas resources, said that the Group’s Overall Development Plan for the phased development of the Yongping Oilfield in the Fuyu 1 Block has received approval from the National Development and Reform Commission of the People’s Republic of China.
The approval of the ODP will allow the Group to advance into the development and production phase for Fuyu 1 Block.
The approved ODP allows KRL to operate and drill up to 1,008 wells in Fuyu 1 Block over a course of five years. These are shallow wells with average depth of less than 300m. Fuyu 1 Block is expected to yield a total of 14.6 million barrels of oil during its production cycle, of which RHP will hold a 49% interest.
“We are very excited to receive the NDRC approval," said Francis Chang, CEO. "It represents a significant milestone for our China project as it moves into the development and production phase. In anticipation of this approval, we had started pre-development preparation as well as the procurement of long lead items since early 2013. This helps to accelerate the development program and allow production to commence in early 2015. Production will be ramped up progressively as more wells are drilled under the approved ODP.”