CNOOC Plans To Develop Xihu Trough in 2002

CNOOC is hoping to start developing gas resources in East China Sea's Xihu Trough in late 2002, according to a statement made by the company's chief financial officer Mark Qiu. CNOOC and its partner. Sinopec Corp., are still negotiating with interested foreign companies on jointly developing Xihu. It is estimated to take two years to complete field development. Therefore, production from Xihu will not begin before year 2004 so plans are to begin field development in late 2002. The Xihu Trough is 400 km east of Shanghai, in an area where Sinopec already made four gas discoveries. Its estimated reserves are more than 1.487 Tcf of gas and 42.6-mil bbl of liquids.