CNOOC Completes Maintenance on Two Offshore Fields

CNOOC has completed maintenance at two major oil fields in the South China and Bohai seas and will start production at four new oil and gas fields offshore China later this year, a CNOOC official said Thursday.

The restart of production at the two fields will raise the company's crude production in the second half of this year, but it is unlikely to prompt CNOOC to increase crude exports.

"Domestic crude demand is very good. We will sell most of our crude at the domestic market," the official said.

The company has restarted operations at the QHD 32-6 field in the Bohai Bay in the North and the PY5-1/4-2 field in the South China Sea. The two fields were shut earlier this year for maintenance due to technical problems, he said. The production rates for the fields were unavailable.

Four additional fields will begin production later this year - three in the Bohai Sea and one in the South China Sea.

In April and July, CNOOC brought the CFD 11-/11-2 field in the Bohai Sea and the Weizhou 12-1N field in the South China Sea into production.

CNOOC is China's largest offshore oil and gas operator. Production from the new fields is expected to raise the company's oil and natural gas output to 140 million-145 million BOE in 2004 from 130 million BOE in 2003.