China Operations Summary
ROC’s first contact with China’s oil industry was in 1998 when the Company exported oil it was producing in Mongolia into China by rail. The oil was sold to Shijiazhuang Refinery (subsidiary of Sinopec). In 2002 ROC sold the Mongolian acreage to Dongsheng Oil Company, a subsidiary of Sinopec.
In 2002, ROC farmed into Beibu Gulf Block 22/12 through a 25% equity in the offshore block. Within the month ROC drilled its first well and discovered oil. ROC acquired operatorship and increased its equity to 40%. In April/May 2006, the drilling of the Wei 6-12S-1 exploration well made a potentially significant oil discovery. Two appraisal wells were drilled on the field.
Following the formal end to the exploration period for Block 22/12 on 30 September 2008, an extension to the PSC was granted for areas covering the Wei 6-12 and Wei 12-8 discoveries to allow completion of the joint development feasibility study and the overall development plan with CNOOC.
On 1 July 2006, ROC acquired a 24.5% operated interest in the Zhao Dong Block in the Bohai Bay, offshore China, via the purchase of 100% of the shares of Apache China Corporation LDC. Within the block there are two producing fields - C&D. Production commenced from the C4 Field (ROC 11.575% unitised interest) and the Extended Reach Area of the C&D Fields from new facilities commissioned in October 2008.
