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Biggest Offshore Oilfield Found
 

China's biggest offshore oilfield has been discovered in the south Bohai Bay.

The oilfield, named Penglai 19-3, so far has confirmed reserves of 300 million tons and estimated reserves of 300 million tons. Experts believe there are more oil reserves to be found in the area.

The Penglai 19-3 oilfield boasts China's second-largest single oil-bearing area. Daqing is China's largest oilfield. It is located in Northeast China's Heilongjiang Province.

Experts said the new oilfield will serve as a key petroleum producer for northern China.

The oilfield was discovered by China National Offshore Oil Corp (CNOOC), and US-based Phillips Petroleum Co, a global oil producer. The two partners will develop the oilfield.

It is reported that the two firms will start to develop some pilot blocks this year and then continue to exploit the oilfield during China's 10th Five-Year Plan (2001-05).

Industrial insiders said the oilfield's annual output could be as high as 13 million tons.

Bohai Bay is one of the country's most important areas for fish, particularly for prawns.

A CNOOC official said the two firms will adopt advanced techniques to prevent the oil from polluting the environment.

The oilfield covers 50 square kilometers, and is only 80 kilometers from Longkou, a city in East China's Shandong Province, and 220 kilometers from Tianjin's Tanggu Bohai Oil Base.

The average water depth in the oilfield is 20 meters, while the oil-bearing layer lies 900 to 1,400 meters lower.

Thanks to its relatively shallow location and the rich reserves, the oilfield yield is expected to be substantial, geologists said.

A cluster of discoveries in recent years have shaped Bohai Bay into a promising oil-rich area. Last year, CNOOC found four oilfields, including Penglai 19-3, Caofeidian 11-1, Bozhong 29-4 and Bozhong 25-1 in the bay.

In the next two to three years, CNOOC will spend US$1.9 billion on developing three oilfields - the second phase of Suizhong 36-1, Qinhuangdao 32-6 in Bohai Bay and Wenchang 13-1/2 in the South China Sea.

CNOOC has decided to double its oil and gas output last year to 40 million tons in 2005.


(China Daily 02/21/2000)



 
   
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