 Shell has three producing fields in the Pearl River Mouth Basin in the South China Sea. The Xijiang fields are some 100 kilometres south of Hong Kong in a water depth of about 100 metres. The XJ24-3 and XJ24-1 fields are in the northern 15/11 Contract Area, in which Shell has a 24.5 percent interest. The XJ30-2 field is in the southern 15/22 Contract Area where the Shell has an interest of 47.75 percent.
The other partners in the developments are CNOOC and ConocoPhillips, who act as Joint Operators of the assets. The facilities comprise two wellhead/production platforms about 14 km apart, producing oil to a Floating Production Storage and Offloading vessel (FPSO), located between them. Production started in November 1994 and peaked at a maximum rate of 120,000 barrels per day (b/d) in 1996. Production has been sustained above 70,000 b/d since 1999, substantially above the initial predictions for ultimate recovery. The application of leading edge technology has been a key enabler in increasing oil recovery from these fields. The XJ24-1 field is some eight kilometres to the east of the production platform and has required the drilling of Extended Reach Wells. The first well to the XJ24-1 field had a total depth of 9,250m with a horizontal displacement of 8,050m, a world record for a well of this type. The application of multilateral drilling technology (including the use of real time data from the reservoir, and geo-steering to keep the well within the reservoir section), and expandable tubulars has also been instrumental in maintaining production rates while reducing costs.
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