China - Weiyuan Gas Field Technical Assistance Project

Docament of The World Bank FOR OMCIAL USE ONLY Repot No 12413 PROJECT COMPLETION REPORT CHINA UEIYUAN GAS FIELD TECENICAL ASSISTANCE PROJECT (LOAN 2580-CeA) OCTOBER 19, 1993 FILE COPY Report No: 12413 Type: PCR Industry and Energy Operations Division Country Department II East Asia and Pacific Regional Office This document bas a restrited distrition and may be sd by recipient only in the performance of their ofiWal duties. Its contents may not otherwise be disclosed without World Bmaik authorization.  CURRENCY EQUIVALENTS Currency Unit = Yuan (Y) Country Exchange Rates Year Y/$ Yearly Avg. Year End Appraisal, April 1985 2.80 1985 2.9513 3.2095 1986 3.4626 3.7314 1987 3.7314 3.7314 1988 3.7314 3.7314 1989 3.7317 4.7339 1990 4.8596 5.2352 1991 5.3603 5.4478 Closing, June 1992 5.80 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES 1 metric ton (mt) = 1,000 kilograms (kg) 1 metric ton (mt) = 2,204 pounds (lbs) 1 meter (m) = 3.28 feet (ft) I cubic meter (CM) = 35.3 cubic feet (CE) 1,000 cubic meters (MCM) = 35,300 cubic feet (MCF) 1,000,000 cubic meters (MMCM) = 35,300,000 cubic feet (MMCF) 1 billion cubic meters (BCM) = 35.3 billion cubic feet (BCF) 1,000 cubic meters of natral gas = 9.31 kilocalories ABBREVIATIONS AND ACRONYM CNPC - China National Petroleum Corporation CNTIC - China National Technical Import Corporation ECPI - East China Petroleum Institute GOC - Governtent of the People's Republic of China lTC - Intemational Tendering Company of CNrIC MOF - Ministry of Finance MOPI - Ministry of Petroleum Industry PCR - Project Completion Report SPA - Sichuan Petroleum Administration SWCPI - Southwest China Petroleum Institute SWMD - Southwest Mining Distrct  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.SA. Office of Director-General Operations Evaluation October 19, 1993 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on China Weivuan Gas Field Technical Assistance Prolect (Loan 2580-CHA) Attached is the "Project Completion Report on China - Weiyuan Gas Field Technical Assistance Project (Loan 2580-CiA)" prepared by the East Asia Regional Office, with Part II prepared by the Borrower. The project was designed to establish a step by step rethodology for determining how to rehabilitate older gas fields. Its central purpose was to undertake a diagnostic study to determine whether the Borrower's interest in investing $200 million to increase production was technically and economically sound. The study showed that the !mvestment would not produce the desired results. The project met all its major objectives. It established a methodology for studying and evaluating gas field rehabilitation projects, and was instrumental in the enhancement of a national petroleum training and research program. The performance of the project is rated as satisfactory, institutional development as substantial and sustainability as likely. The PCR quality is satisfactory. The project will be audited together with the first four projects completed earlier in the oil and gas sectors in China. Attachment Robert Picciotto by Hans-Eberhard K5pp This docunent has a restricted distribution and may be *asee; yy recipients only in the performance of their officiat duties. Its contents may not otherwise be Jsectosed without World Bank authorization.  FOR OMCIAL USE ONLY CHINA WEIYUAN GAS FIELD TECHNICAL ASSISTANCE PROJECr (LOAN 2580-CHA) PROJECr COMPLETION REPORT Table of Contents Preface ................................. i Evaluation Summary ............. . . .................. ii PART I: PROJECT REVIEW FROM BANK'S PERSPECTIVE .1 A. Project Identity .1 B. Background. 1 C. Project Objectives and Description ..... 2 D. Project Design and Organization ........ .................... 2 E. Project Implementation ........... ........................ 3 F. Project Results . ........................................ 3 G. Project Sustainability ............. ........................ 4 H. SWMD Fnances ................. ....................... 5 1. Bank Performance ................ ....................... 5 J. Borrower's Performance ........... ....................... 5 K. Project Relationship. 6 L. Consultant Services. 6 M. Project Documentation and Data. 6 PART II: PROJECT REVIEW FROM BORROWER'S PERSPECTIVE. 7 Project Results. 7 World Bank Performance. 7 SWMD & SPA's Performance. 7 PART III: STATISTICAL INFORMATION. 8 Annex 1 SWMD Finances (1985-92) .14 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - i - CHNA WEIYUAN GAS FELD TECENICAL ASSISTANCE PROJECT (LOAN 2580-CHA) PROJECT COMLETION REPORT PREFACE This is the Project Completion Report (PCR) for the Weiyuan Gas Field Technical Assistance Project in China, for which Loan 2580-CHA in the amount of $25 million was approved on June 11, 1985. The loan was closed, after three one-year extensions of the closing date, on June 30, 1992. The last disbursement was made on July 31, 1992. The undisbursed amount, $7,433.65, was canceled. The PCR was jointly prepared by the Industry and Energy Division of China and Mongolia Department of the East Asia and Pacific Regional Office (Preface, Evaluation, Summary, Parts I and IED and the Borrower (Part II). Preparation of this PCR was started during the Bank mission in February 1993, and is based, inter alia, on the President's Report; the Loan and Project Agreements; supervision reports, correspondence between the Bank and the Borrower; and internal Bank memoranda.  - ii - CH[NA WEIYSAN GAS FIELD TECNICAL ASSISTANCE PROJECT (LOAN 2580CHA) PROJECT COMPLETION REPORT EVALUATION SUMMARY Objectives 1. The ultimate pret objective was to assist the Southwest Mining Distict (SWMD) to arrest production dedline in an economical and effective manner. Toward this end, the thrust of the project was directed at the tansfer of specalized modern technology and institution bulding of SWMD in the following measures: (a) implementation of a diagnosdc study of the Weiyuan gas field to gain a better understanding of the reservoir, including verification of the gas reserve estimate, and investigate the feasibility of enhanced gas recovery techniques and related investment that would maximize economic recovery of gas reserves and minimize the risks associatd with this program; and (b) maintaining gas production while the study was being undertn through the import of critcal equipment. In addition, the project aimed at strengthening petroleum education at the natonal level (Pa I, para 3). Ipolementation Experience 2. The project was implemented satisfactorily with a 10 percent cost overrun in US dollar terms. Completion of the project in 1992 represented a four-year delay from the apprail estimate. The extended delays could be attributable to a number of reasons, including: (a) protacted contract negotiations with international consultants and subsequent revision in the scope of the diagnostic study, which were, in part, caused by insufficient clarity in the Terms of Reference in defining the scope of work and inadequate understanding between the project entity and the consultants (Part I, para. 8); (b) the reservoir conditions were more complex than appraisal expectation, which necessitated the drilling of six mote wells than the appraisal estimate for data collection (Part I, par 8); and (c) extended delays in the p ent of mode-n equipment for data colection and gas production as a result of intperience of the project entity in Bank projects, cumbersome approval procedures and fragmentation of responsibilities among various government agencies (Part I, para. 7). Resut 3. The main project objectives, transfer of technology and institution building of SWMD, were achieved successfully through overseas training of SWMD staff as well  - iii - as on-the-job training by intemational consultants for the diagitostic study, well service contractors and suppliers associated with the supply of critical modern equipment and instrumentation. Further, the diagnostic study achieved the objective of gaining a better understanding of the Weiyuan reservoir. While the study largely confirmed the gas reserve in place estimated by SWMD, it concluded that the rapid early development of the field has resulted in irreversible damage to wie reservoir and there was litfle possibility of an economically viable full-scale rcuscitation of the field as originally proposed by SWMD (Part I, para. 9). Thus, the implementation of the comprehensive techno-economic diagnostic study before embarldng on a full scale redevelopment program, such as orginally prmposed, was filly justified and avoided considerable expenses and wasted efforts. Separately, the exchange trining program arranged between the East China and Southwest China Institutes and selected overseas universities was successful, and resulted in contacts with foreign institutions being established (Part 1, para. 10). Sustainalbility 4. Although the diagnostic study has shown that some gas production could be maintained, currendy available techniques are unlikely to recover sufficient gas to justify a large-scale resuscitation of the Weiyuan gas field (Part I, para. 9). Study techniques and experience gained, however, will be useful in assessing and producing other gas fields. Further, the petroleum education component, including international exchange program, was considered to be successful. The good practices learned under this component would be replicated by China National Petroleum Corporation (CNPC), to further strengthen petroleum education in China. Moreover, the results of the study on the long-term training and research program in petroleum technology would be incorporated in CNPC's plan to build up the institution capability of the petroleum sector (Part I, para. 14). Findings and Lessons Learned 5. in retrospect, the project schedule expected at the time of project appraisal was overly optimistic in view of Borrower's lack of experience in Bank-financed projects. Further, to avoid implementation delays, the terms of reference for consultant services should have defined clearly the scope of work. Finally, procurement procedures should be streamlined as much as possible to avoid protracted delays.  CHINA VEIYUAN GAS FIELD TECHNICAL ASSISTANCE PROJECT (LOAN 2580-C HA) PROJECT COMPLETION REPORT PART I: PROJECT REVIEW FROM BANK'S PERSPECTIVE A. Project Identity Name Weiyuan Gas Field Technical Assistance Project Loan Number 2580-CHA RVP Unit East Asia and Pacific Region Country China Sector : Energy Subsector : Natural Gas B. Backgrounad 1. Coal will inevitably continue to be the dominant energy source for China, accounting for about 75 percent of its commercial energy consumption. Oil is another significant source of commercial energy (17 percent) for the country. However, despite China's high natural gas potential, the share of gas in commercial energy has remained very small (2 percent). Gas exploration and development has been inadequate mainly due to past neglect, financing constraints, and limited access to advanced technologies. Natural gas production in China amounted to 15.4 billion cubic meters (BCM), in 1991. About 50 percent of the gas production is nonassociated gas, 90 percent of which is located in Sichuan Province. Most of the major gas-producing fielis in China are considered mature and many of these fields have already experienced natural production decline. In 1985, gas production in China was 12.9 BCM, representing a decline of 11 percent from its peak production (14.5 BCM) in 1979. The shortage of gas became a major impediment to economic growth and remedial measures were urgently needed to arrest the decline of gas production. It was at this critical juncture that the Chinese government sought the assistance of the Bank in the development of the gas sector. 2. The Weiyuan gas field was discovered in 1964 and gas production began in 1968. The gas producer, Southwest Minting District (SWMD), estimated gas reserves originally in place in the Weiyuan field at 40 BCM. Peak annual production of 3.7 million cubic meters (MMCM) per day was achieved in 1976. Since then, production had fallen rapidly; by 1985, production fell (by 82 percent) to an average of only 0.8 MMCM per day due to the influx of water into the producing wells. Cumulative gas production from  -2 - the field only amounted to 12 BCM (or 30 percent of gas-in-plae). Based on the assumption that an additional 10 BCM could be still be recovered, SWMD's initial request for Bank assistance was to support a field-wide rehabilitation program of over $200 milion to afrest production decline. However, in view of the complexity of the reservoir and difficult operating conditions, the Bark recommended that extreme caution be exercised to reduce technical and economic risks through a step-by-step approach. Prior to making an investment decision on a major rehabilitation program, the Bank suggested, and SWmID agreed, that a diagnostic study be undertaken under the project. This approach could avoid unnecessary investment and, if the results are positive, the study would be followed in the second phase by a major investment program to secure a higher level of gas recovery from the Weiyuan field. C. Project Objectives and Description 3. The ultimate project objective was to assist the Southwest Mining Distrct (SWMD) to arrest production decline in an economical and effective manner. Toward this end, the thrust of the project was directed at the transfer of specialized modern technology and institution building of SWMD in the following measures: (a) implementation of a diagnostic study of the Weiyuan gas field to gain a better understanding of the reservoir, including verification of the gas reserve estimate, and investigate the feasibility of enhanced gas recovery techniques and related investment that would maximize economic recovery of gas reserves and minimize the risks associated with this program; and (b) maintaining gas production while the study was being undertake through the import of ctical equipment. In addition, the project aimed at strengthening petroleum education at the national level. 4. The project included: (a) the acquisition of reservoir and production data using modern technology; (b) a comprehensive diagnostic study including an assessment of key reservoir parameters, well completion and production methods, reservoir simulation and well stimulation, and related pilot operations, as well as the design of an optimum development program; (c) essential equipment and instrumentation for data collection and production; and (d) training and education to strengthen ECPI and SWCPI and to assist MOPI (later CNPC) in undertaking a study of the petroleum education requirements at a national level. D. ProJect Design and Organization 5. The project was designed to assist SWMD in evaluating the feasibility of enhanced gas recovery techniques and related rehabilitation program at the Weiyuan gas field, which encountered technologically complex production problems. As noted above, a step-by-step approach was adopted, whereby immediate assistance under the project included the implementation of a comprehensive techno-economic diagnostic study instead of a full-scale rehabilitation program. This approach preved to be prudent and appropriate in light of the findings of the study that indicated that there is little possibility of an economically viable full-scale resuscitation of the field as originally proposed by SWMD.  - 3 - 6. The project was mainly implemented by SWMD with the assistance of international consultants. A project implementation unit (PIM) was set up by SWMD under a deputy director to facilitate coordination, monitoring and reporting under the project. 'fhe ed-a-tion department of the former MOi-I, currently the China National Petroleum Cor riflon (CNPC), which was responsible for the implementation of the petroleum educaaon component, also formed a PIU under a deputy director. 7. However, considerable delays in procurement were initially encountered, in part due to lack of experience with Bank procedures, fragmentation of responsibilities among various Chinese agencies, and cumbersome internal clearance procedures. As in the case of other onshore petroleum bureaus, SWMD did not have the authority to procure directly Bank-financed goods and services, nor was it allowed to process Bank loan disbursement applications directy. Internationalprocurement under the project was carried out through an agent authorized by the governreent and disbursement applications were centrally processed by CNPC. The above institutional arrangements were not conducive to efficiency and contributed to delays in procurement and disbursements. These delays were exacerbated by inadequate coordination among the concerned agencies. E. Project Implementation 8. The project was implemented satisfactorily with a 10 percent cost overrun. However, completion of the project was delayed by about four years due to a number of reasons, including: (a) a slow process in soliciting and evaluation of bids, in part due to the lack of experience of SWMD and inadequate interagency coordination noted above; (b) protracted contract negotiations with international consultants and subsequent revision in the scope of the diagostic study, which were, in turn, caused by insufficient clarity in the Terms of Reference in defining the scope of work and inadequate understanding between the project entity and the consultants; and (c) the reservoir conditions were more complex than appraisal expectation, which necessitated the drilling of six more wells than the appraisal estimate for data collection. In retroWect, the implementation schedule envisaged at the time of project apprisal was overly optimistic. F. Project Results 9. Diagnostic Study. The transfer of spedalized modern technology and institution building of SWMD, two of the project objectives, were achieved successfully through on-the-job training by international consultants, well service contractors and suppliers associated with the supply of cntical modern equipment and instrumentation. Further, the diagnostic study achieved the objective of gaining a better understanding of the Weiyuan reservoir. While the study largely confirmed the gas reserve in place estimated by SWMD, it concluded that the rapid early development of the field has resulted in irreversible damage to the reservoir and there was little possibility of an economically viable full-scale resuscitation of the field as originally proposed by SWMD. Nevertheless, in view of the substantial amount of in-place gas reserves that have not yet been produced, the study recommended the implementation of a pilot program to test a number of techniques to enhance gas production in the Weiyuan gas field. These  -4 - techniques, if shown to be viable, could be applied in a larger-scale gas production scheme. 10. Petroleum Education. The objective of strengthening petroleum education in china was achieved under the project. International consultants assisted the former MOPL, currently the China National Petroleum Corporation (CNPC) in the development of a national petroleum training and research program. In addition, under the petroleum education component, 424 overseas training visits were made by professors, lecturers and graduate students. Of this total, 28 were for intemational conferences, 44 for one-month study, 24 for PhD degree study, 19 for MSc degree study, 139 for 3-4 month advanced study, and 170 for 6-8 month cocperative research. The East China and Southwest China Petroleum Institute's exchange program resulted in useful contacts being established with overseas institutions. 11. Project Costs and Financing. The total cost of the project was $32.94 million equivalent, representing 10 percent above the appraisal estimate of $30 million equivalent. All of the cost overrun ($2.94 raillion equivalent) was related to local expenditures, including $1 million for the diagnostic study, $1.04 million for the driling of six additional in-fill wells for new logging data acquisition and $0.9 million for the purchase of equipment and the setup of two compressor stations. The total foreign exchange expenditure of the project was the same as appraisal estimate; the cost savings from the diagnostic study and data collection were used to finance additional critical equipment for maintaining gas production. Salient highlights of the project costs and financing are given in Part III, Table 5. 12. Loan Allocation. The original and actual loan allocation is shown in Table 5, Part m. Unaocated amounts ($3 million) and savings from foreign exchange cost (about $4 million) of the diagnostic study and data collection were largely reallocated to increased equipment (gas compressors) for arresting gas production decline. Consequently, the loan allocation for equipment was about 93 percent higher than the appraisal estimate. 13. Enviromnental Impact. As the project is basically a technical assistance project involving a study, education and taining, there is minimal environmental impact. G. Project Sustaiabiity 14. Although the diagnostic study has shown that some gas production could be maintained, currently available techniques are unlikely to recover sufficient gas to justify a large-scale resuscitation of the Weiyuan gas field. Study techniques and experience gained, however, will be useful in assessing and producing other gas fields. Further, the petroleum education component, including international exchange program, was considered to be successful. The good practices leamed under this component would be replicated by CNPC to further strengthen petroleum education in China. Moreover, the results of the study on the long-term training and research program in petroleum technology would be incorporated in CNPC's plan to build up the institution capability of the petroleum sector.  -5- H. SWMD Finances a5. Salient features of SWMD's finances over the period 1985-92 are summarized in Anm.xL.- During 1985-88 (the financial forecast period at project appraisal), SWMD's actual expenses were slightly higher than appraisal projections. These adverse impacts were more than offset by its actual production and average gas prices which were largely higher than the appraisal estimates. As a result, its actual net income was higher than the appraisal expectation (by 3 percent in 1986 and 31 percent in 1988). On the other hand, its average self-financing ratio during this period was 63 percent, which was 9 percent less than the appraisal estimate of 69 percent. This was because SWMD's actual investments were substantially higher than anticipated at the time of project appraisal. 16. During 1989-92, SWMD's net income declined gradually from a peak of Y 79 million in 1985 to Y 50 million in 1992, representing a decrease of 37 percent. This was attributable to rapid increases (by a total of 96 percent) in operating expenses, which outpaced the increases of average gas prices (by a total of 34 percent) and gas production (by 2 percent). Its average self-financing ratio during this period decreased to 51 percent. The rapid rises in the costs of production reflected the increasing financing requirements for field development and rehabilitation to arrest gas production decline. With a view to increasing resource mobilization for sector development and providing incentives for efficient uses of gas, SWMD's natural gas prices are expected to be further adjusted to allow the gas producer to maintain financial viability. T. Bank Performace 17. The preparation of the project was good, the decision during appraisal to carry out a detailed study before embarking on an extensive program to rehabilitate the gas field has proved to be a good decision. Supervision missions were made regularly. The Bank has reviewed the consultant's report on the diagnostic study and has discussed the recommendations with the Borrower. J. Borrower's Performance 18. Apart from the early delays in the award of consultancy and equipment supply contracts, which were due to SWMD's lack of experience of Bank projects and to the interventions of central authorities, the Borrower performed well, particularly in carrying out the field work. The preparation of documentation required for project supervision was well done. 19. Protracted negotations sessions with consultants' contracts caused inordinate delays, ultimately necessitating extensions to the closing date of the loan.  - 6- K. Project Relationship 20. The relationship between the Bank and the Borrower was good throughout the project. L. Consultant Services 21. The consultants, contractors, and suppliers used to carry out the studies perfomed well and were the key elements in the successful completion of the project. In addition to carrying out the studies, field work and the supply of the new equipment, they provided on-the-job training in new techniques and use of the equipment needed for the transfer of technology required to strengthen SWMD and the Institutes. 22. The pnncipal consultants were responsible for the identification and hiring of other consultants for engineering and other studies for which the principal consultants did not have the expertise. The Borrower felt that the scope of work was too large and vared for only one consultant and perhaps could have been accomplished more satisfactorily by selecting a number of firms to focus on smaller components of the project. 23. The consultants chosen to oversee and implement the education and exchange program did a very credible job. The programs, professors and instructors chosen to carry out the work drew high praise from the Borrower and will stand as an example of hov' to implement similar education programs in the future. M. Project Documentation and Data 24. The legal agreement proved adequate for the efficient conduct of the project. The President's report provided a good framework for project implementation, while the project supervision reports provided a comprehensive history and progress of project implementation.  - 7- PART II: PROJECT REVIEW FROM BORROWER'S PERSPECTIVE Projed Result 1. The project objectives were largely achieved as the geological complexities of the Weiyuan gas field were better understcod as a result of the studies. SWMD's equipment and technology were upgraded through procurement of equipment and training offered by the various sevice contractors and the consultants. 2. Since July 1987, 33 engineers were sent abroad for technical training. The training during the diagnostic study covered geology, logging, laboratory analysis, single- well analysis, single-well simulation, reservoir simulation, history match and production engineering. Software provided by the consultant would continue to play a positive role in the development of Weiyuan gas fild and similar gas fields with bottom or edge water. World Bank Performance 3. As SWMD lacked experience in this type of project, the Bank staff made a significant contribution to the implementation of the project. Assistance was given by the Bank staff in preparing terms of reference, reviewing of technical specifications on the procurement of equipment, introducing methods for evaluation of bids and financial mnanagement. The supervision missions were instrumental in maintaining the progress of the progress. SWMD and SPA's Performance 4. SWMD was very conscientious and responsible for the implementation of the project. The Loan Project Office of SWMD played an important role in implementation of the project. The Project Leading Group of SPA was active in deciding terms of reference of the diagnostic study, to confirm the bidding evaluation report and results.  - 8- PART Im: STATISTICAL SUMMARY 1. Related Bank Loans Year of Loan title Purpose Approval Status Daqing Ollfield Development, TIA and 1983 Completed 6130190 Gaotaizi Reservoir Training Development Project (LN 2231-CHA) Zhongyuan Wenliu Exploration, Develop- 1983 Completed 5103/91 Petroleum Project ment, T/A and Trainiag (LN 2252-CHA) Karamay Petroleum Exploration, heavy oil 1984 Completed 3131191 Project (LN 2426-CHA) recovery, T/A and Training Liaodong Bay Petro- Gas Exploration 1986 Completed 1/16190 leum Development Project ULS 2708-CHA) 2. Project TimSl Items Date planned Date revised Date actual Identification Mission 10/84 10/84 Appraisal Mission 02/85 02/85 Loan Negotiation 04/29/85 04129/85 Board Approval 06/11/85 06/11/85 Loan Signature 07/26/85 08/26/85 Loan Effectiveness 08/85 01/31/86 Loan Closing 06/30/89 06/30/92 Loan Completion 12/31/88 07131/92 Comments: Initially, there was more than one-year delay in appointing the consultant for the diagnostic study, and there was a two-year delay in completing the study due to the complex nature of the reservoir.  -9 3. Loan Disbursements Cumultv Agp-aisal and Actua Disbursements ($ miLfion) FY86 FY87 FY88 FY89 FY90 FY91 FY92 Appraisal 2.0 14.0 23.0 25.0 25.0 25.0 25.0 Actual 0.3 3.1 9.3 14.9 16.9 20.2 25.0 Actual as Z of appraisal 15 22 40 60 68 81 100 Date of final disbursement: July 31, 1992. APPRAISAL VS ACTUAL DISBURSEMENTS 2O - -APPPASAL /0' -C--- ~~~ACTU~AL I FY FY Pe FY FY FY 86 87 88 89 90 91 92  - 10- 4. aroect implemetation Project components Appraisal estimate Actual Collection of reservoir and production data September 1986 June 1987 Stimulation Pilots December 1987 Continuins Diagnostic Study June 1987 January 1992 Procurement of Equipment and Instruments June 1988 June 1992 Training (Institute Exchange Program) December 1987 December 1988 Petroleum Education Study December 1987 December 1987  - 11 - 5. Prqject Costs and Financing A. Pject Costs ($ million) A&vraisal estimate Actual Local Foreign Total Local Foreign Total Diagnostic Study 1.10 4.00 5.10 2.10 2.90 5.00 Data Coll. Pilot Test 1.80 5.50 7.30 3.54 2.59 6.13 Equipment 1.10 7.00 8.10 1.80 15.46 17.26 Training 0.50 4.00 4.50 0.50 4.05 4.55 Base Cost 4.50 20.50 25.00 L.94 25.00 32.94 Physical contingency 0.30 2.90 3.20 Price contingency 0.20 1.60 1.80 Total 5.00 25.00 30.00 7.94 25.00 32.94 B. Eriect inahcing ($ million) Am2ralial Actual la Source Local Amt. Z Total Local Amt. S Total GOC/SWHD 5.0 0.0 5.0 7.94 0.00 7.94 IBRD Equipment & Iastrumentation 8.0 32 15.5 61 Well Services 6.0 24 2.6 10 Studies under Part B of Project 4.0 16 2.9 11 Training & Cons. Ser. under Part D 3.5 2 4.0 16 Study Under Part E 0.5 12 0.5 2 Unallocated 3.0 Total 5.0 25.0 10 30.0 7.94 25.5 100 32.94 h Basd on Bank loan aoain based on SWM) ords. B$ disbusent reodbs showdiffren aocao asfomow: Equipmet & nsumentatio 9.1 We ServiceS 10.7 Stuies Under Parl B of Projec 13 Trainng & Cos. Serv. under Pat D 1.9 Study Under pat B 2.0 TOtal  - 12 - 6. Project Results A. Economic/Financial Impact (Not applicable for a technical assistance project) B. Studie Studies Purpose as Defined at Statue Impact of Study Appraisal 1 Diagnostic Reservoir Study Completed Provided basis for to assess gas potential future development of the Weiyuan gas field./a 2 Petroleum Education Study Completed Provided basis for to assess future national influencing the needs national plan for future petroleum research, education and training.-b & The Borrower's original plan for a full-scale redevelopment of fte field will be reduced. & A follow-up on the development of the national plan would be required in a future project. 7. Status of Covenants Project agree- ment section Covenant Status 2.01 b SWMD shall maintain the Project Unit to coordinate Complied Implementation of the project. 2.06 SW0D shall review vith the Bank the findings of the Complied study, and the consequent action plan. 3.05 SW0D shall furnish to the Bank for review and comente, Complied (delayed) the findings of the education study under Part B of the project and the subsequent action plan.  - 13 - 8. Use of Bank Resources A. Staff Lnput (Staff-weeks) Activity FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93 Total Preparation 7.2 - - - - - - - - 7.2 Appraisal 27.1 - 27.1 Negotiations 2.9 - - - - - - - - 2.9 Supervision - 13.3 12.5 10.0 4.9 4.3 7.7 1.1 - 53.8 PCR - - - - - - - - 3.5 3.5 Total 37.2 13.3 12.5 10.0 4.9 4.3 7.? 1.1 3.5 94.5 B. Missio_ns Sta8e of Month/ No. of SW In Specialization Performance project cycle year persons field represented la status lb Problems Ic Through Appraisal 10/84 2 1 PE, FA 1 02/85 5 2 G, Z, FA, PZ I Appraisal through Board approval Post appraisal 05/85 2 3 ED 1 SuDervision mission 1 09/85 1 1 E 1 Mission 2 12/85 3 1 GP,P, PA 1 Mission 3 03/86 6 1 a, PE, FA, 1 1 Mission 4 02/87 3 1 G, PF, PS 1 Mission S 06/88 3 1 PS, FA, PE Mission 6 07/89 2 1 PS, PE 1 Mission ? 04/90 2 1 PE, 1 I Mission 8 07/90 3 3 PA, PE, PE 1 Mission 9 11/91 3 0.2 FA, PZ, C 1 PCR mission 02/93 2 0.5 PA, C 1 /a Re to U __tif: PE = Petroleum Engineer, G - eoologist, GP - Geophysicist; ED Educator, PS = Procurement Specialist; PA - Fmancial Analyst; E = Economist. /b Key to PEoiect Status: 1 = No significant problem; 2 = Moderate problem; 3 - Major problem being addJessed; 4 = Major problem not adequatly addressed. /c Kev to Problem Tps: P - Political; F = Fincial; M = Managerial; Y -Technical;O- Other (usually procurement). Note: in adjta to the missions listed, there were short field visits, discussions with conslants, etc., which ae also induded in the total staff-weeks used on the project  CHINA SOUT4 WEST WEIYNAN ELECTRICAL (SWMD) INCOME STATEMENTS (1N85 - 1921 (Yuan MIN") 8^LE8 VQLIS Netuud Ga (MMCM) 922 973 900 974 s80 980 960 964 1008 1010 902 982 Av. Gas Plle (Y/MCM) 168 1t0 166 175 166 167 108 11 187 166 219 243 FIEVENUES Sabe Revene 165.0 165.4 165.0 170.2 169.0 160.1 159.0 174.3 188.4 167.8 208.2 238.0 Lon: Sabe Tax (8.0) (7.8) (8.0) S8.8) (8.0) (8.1) (8.0) 18.9) (0.8) (8.7) (10.9) 412.3) Net sales Revenue. 147.0 147.7 151.0 l1e1. 161.0 162.0 151.0 106.4 178.6 1690 197.4 226.7 EXENSES OperatIn Cost 69.0 65.6 58.0 62.2 58.0 59.3 68.0 60.9 76.3 61.6 91.0 115.5 Depreciation 21.0 16.8 22.0 26.3 22.0 22.5 22.0 21.9 28.2 27.7 35.2 45.2 Othwe 1.0 0.7 1.0 1.3 1.0 1.9 3.4 4.0 4.4 6.7 Totad Expenes 81.0 82.0 81.0 88.8 81.0 83.2 81.0 84.7 107.9 83.3 130.6 168.3 Inome Selore Inteest 86.0 R6.7 70.0 72.7 70.0 6.8e 70.0 80.7 70.7 65.6 66.9 60.3 Interest 2.0 0.1 8.0 0.2 9.0 0.9 10.0 1.8 3.1 7.0 7.9 10.3 hIcome Tax . - Net Inome 64.0 05.0 62.0 72.5 81.0 67.9 60.0 78.9 87.6 68.7 59.0 60.0 o .. 0  CHINA SOUTH WEST MINING DISTPICT (SWMD) INVESTMENT FUNDING (1985 - 19921 tYuan Mions) Investment & Feld Maintenance RequIrmente 89 107 130 17t 143 203 128 219 235 234 243 261 Fnanced by: Local loan, crodts grato 19 61 21 47 22 73 29 84 103 102 98 S8 IBRD Loan 4 0 24 6 31 14 0 19 19 a lo 24 t-n lItemay RetalnedFund xs 117 9S l8 90 117 99 116 112 124 129 129 1 Of wtich: Expbratin & Devebpment Funds 42 71 54 79 50 77 as 77 at 81 76 79 Fked Maintenance 18 6 23 6 24 5 26 5 5* 6 6 6 Renewl & Fefonm Povskons a 34 8 36 8 35 8 34 26 38 46 45 NOTE: Figures nmy not tota exactly due to rounding. P I 0 OM3 Ft