Block 5

In April 2002, CNPC signed a production sharing contract for a 50% interest in Block 5 in Oman. The operator of this oil and gas exploration and development project is a joint operation company established by CNODC, CNPC (Hong Kong) Limited and Oman MB Group.

Daleel and Mezoon oilfields are the major production zones in Block 5. The Daleel Oilfield has experienced over 40 years of commercial production. Daily output of this block has increased from 4,300 barrels to 15,000 barrels by adopting multilateral horizontal well drilling. In 2005, a high yield oil blowing with a daily output of 1,850 barrels was obtained from well Daleel-75 in Block EF, which is the highest daily production per individual well in the south of the Daleel Oilfield. In 2006, the daily productivity of the four multilateral horizontal wells in the Mezoon Oilfield each reached 600-800 barrels at the initial stage. Well DL-105 drilled at the DE fault block in the Daleel Oilfield was put into production with a tested daily natural flow output of 800 barrels at the initial stage.

In 2008, a new discovery was made in the structural-lithologic traps in Shuaiba Formation in Block 5. Despite the rapid natural depletion of the oilfield, oil output  was increased to 20,000 barrels/day from 4,500 barrels/day when we took over the block in 2002.