The Huizhou 21 — 1 oil field is one of the first offshore oil fields to be developed in the South China Sea. After start—up of production from HZ/21 — 1 in 1990, four adjacent oil fields have been developed and tied into the original infrastructure. The Huizhou Fields were developed and are operated by a joint venture between China Offshore Oil Nanhai East Corporation (CONHE) and ACT Operators Group, which is jointly owned by three Western oil companies ( A gip, Chevron, Texaco).

Even though oil prices have been much lower than originally forecasted, ACT and CONHE have been able to mitigate the impact of lower oil prices on the financial performance of the Huizhou Fields. This is due to better — than — expected reservoir performance, continuous efforts to update and improve the development plan, and cost—effective integration of new fields into the existing infrastructure. This case study describes how the development plan has evolved and the continuous learning process that CONHE and ACT went through to optimize economic benefit.

You can access this article if you purchase or spend a download.