CPC, CNOOC Hook up to Search for Oil & Gas in Taiwan Strait

Chinese Petroleum Corporation plans to collaborate with China National Offshore Oil Corporation to prospect for and exploit oil and natural gas resources near Penghu at the middle line of Taiwan Strait, where is a potential huge oil and gas field as the two sides' data indicated.

In fact, the government of Mainland China has approved the move while the Taiwan authorities are still discussing on the cooperation.

CPC and CNOOC have jointly prospected for oil and natural gas resources in Tainan Basin and Chaoshan Trough previously but they found no oil and gas there. The two companies did not give up and intended to extend their cooperation.

CPC and CNOOC chose the sea area mentioned above as the second prospecting site for oil and natural gas, because the two partners have made prospecting there and found abundant oil and gas reserve. However, Penghu Area is very sensitive to the governments both at Mainland China and Taiwan for its strategic position so the Taiwan's approval will be a significant step towards the further cooperation between the Mainland China and Taiwan in resource development.