China - Weiyuan Gas Field Technical Assistance Project

Document of The World Bank FOR OFCIA L USE ONLY RhWt N.. P-3988-CHA REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO $25.0 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE WEIYUAN GAS FIELD TECHNICAL ASSISTANCE PROJECT May 16, 1985 b docmen bu a dWbuto m be use by rpim y la &e pef o of the~~~~~ir ~W dod lF n ewwwbdi I widw WM Ban behd  CURRENCY EQUIVALENTS Calendar 1984 April 1985 Currency Unic = Renminbi (RME) (RMB) $1.00 = Y (Yuan) 2.32 Y 2.84 Y 1.00 = $0.43 $0.35 (Project cost estimates are based on the February 1985 exchange rate of Y 2.8 per $1.00 which prevaiLed at the time of appraisal.) FISCAL YEAR January 1 to December 31 WEIGHTS AND MEASURES 1 metric ton (mt) = 1,000 kilograms (kg) 1 metric ton (mt) 2 2,204 pounds (lb) 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) - 0.62 miles (T ) I cubic meter (m3) - 35.3 cubic feet Ccft) X barrel (bbl) = 0.159 cubic meter (cu. m-.) I metric ton of oil 39' API = 7.60 barrels (bbl) I normal cubic meter of natural gas (cu. m.) - 37.32 standard cubic feet (scf) 1 kilocalorie = 3.97 British thermal unit (Btu) i Megawatt (Mu) - 1,000 kilowatts I kilowatt hour (kWh) = 1,000 watts/hour 1 Gigawatt hour (GWh) 1 billion watts/hour 1 barrel -er day (bld) - 0.159 cubic meters/day 1 million cubic meters/day (1MMCMD) = 35.3 million cubic ft/per day I billion cubic feet (BCF) = 28.33 million cubic meters 1 trillion cubic feet (TCF) - 28.33 billion cubic meters 1 MCM = 1 thousand cubic meters 1 MCF = 1 thousand cubic feet 1 BCM - 1 billion cubic meters 1 toe = 1 con of oil equivalent ABBREVIATIONS AND ACRONYMS ARCO - Atlantic Richfield Company CNOOC - China National Offshore Oil Corporation CNTIC - China National Technical Import Corporation EOR - Enhanced Oil Recovery ECPI - East China Petroleum Institute GOC - Government of China IOCs - International Oil Companies MOG - Ministry of Geology MOPI - Ministry of Petroleum Industry SPAB - Sichuan Petroleum Administrative Blureau SWCPI - South West China Petroleum Institute SWMD - South West Mining District  FOR OFFICIAL USE ONLY CHINA WEIYUAN GAS FIELD TECHNICAL ASSISTANCE PROJECT Loan and Project Summary Borrower: The People's Republic of China Beneficiaries: South West Mining District (SWMD), the Ministry of Petroleum Industry (MOPI), the East China Petroleum Institute (ECPI) and the South West China Petroleum Institute (SWCPI) Amount: $25.0 million equivalent Terms: 20 years, including 5 years of grace, at standard variable interest rate. Relending Same terms and conditions as the Bank loan; SWMD bears the Terms: foreign exchange risk. Project Description: The project objective is to assist SWMD and the Government to - undertake a pre-investmient study of the Weiyuan gas field in order to design a rehabilitation program that will maximize recovery of gas reserves. The project would include: (i) acquisition of reservoir and production data using modern technology; (ii) a comprehensive diagnostic study including an assessment of key reservoir parameters, well completion and production methods, reservoir simulation and well stimulation, and related pilot operations, as well as the design of an optimum development program; (iii) essential equipment and instrumentation for data collection and production; and (iv) training to strengthen ECPI and SWCPI and to assist MOPI in undertaking a diagnostic study of the petroleum education requirements at the national level. Notwithstanding the low permeability and porosity of the reservoir, there is a reasonable prospect that an additional 10 billion cubic meters (BCM) of gas (10 million toe) might still be recovered. Consequently, a diagnostic study will be undertaken as part of the proposed project to minimize risks and uncertainty before a commitment is made to a large-scale investment in enhanced gas recovery. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: Local /a Foreign Total - --- - ($ million)