CNOOC Ltd. has begun drilling the Dongfang 1-1 Well, the first in the offshore Dongfang Oilfield near Dongfang City of southern China's Hainan Province.
The Dongfang 1-1 Well will be located in the Yingge Sea Area of the Beibu Gulf, which is 110 kilometers from Dongfang City. It is estimated to have 1.08 million cubic meters of natural gas reserves. The exploration of natural gas from the Dongfang Oilfield is divided into two phases. The first will include a central offshore platform, an offshore mining platform, two under-sea pipelines, an underwater electric cable and a land terminal.
The total annual natural gas output of the Dongfang Oilfield is estimated at 2.4 billion cubic meters, 800 million cubic meters of which will be supplied to CNOOC Chemical Co., located in Dongfang City's Luodai suburb. Another 1.6 billion cubic meters is expected to supply a local power plant for industrial and daily purposes. The Dongfang 1-1 Well is expected to be finished in July 2003.