PetroChina Starts Developing Offshore Block in Bohai Bay
BEIJING (Dow Jones Newswires), December 1, 2008
PetroChina Co. has started developing an offshore block in Bohai Bay with an output target of 3 million metric tons a year or 60,247 barrels a day, parent company China National Petroleum Corp. said Monday.
The Yuedong block, located in shallow water near Liaoning province, has rich reserves of heavy oil, CNPC said on its Web site, without elaborating.
Yuedong is part of the Liaohe field, China's largest heavy oil field, with annual output at 12 million tons a year or 240,986 barrels a day.
As an aging field, Liaohe faces depletion of reserves and needs Yuedong as a replacement. But CNPC said that development of Yuedong is highly risky and expensive due to active tides and a long icing period in the block.
It didn't say whether the development would be profitable amid current low oil prices.
PetroChina has formulated an overall development plan for the block, including construction of four artificial islands, an oil pipeline and one land-based processing station, it said, adding it will start trial operation of six wells next year.
Copyright (c) 2008 Dow Jones & Company, Inc.
- Sources: PetroChina To Take On Global Rivals In Major Expansion Drive (Dec 18)
- Media: Three Dead After Suspected Gas Leak At PetroChina Refinery (Nov 20)
- PetroChina, Beijing Firm Doubling LNG Storage in Caofeidian as Demand Rises (Nov 06)
Company: CNPC more info
- Petrobras CEO Says To Discuss Refining Partnership With CNPC CEO (Nov 15)
- CNPC Plans to Cut Gas Supplies to Industrial Users-State Media (Nov 06)
- China's CNPC Starts Third Natural Gas Pipeline To Shanghai (Oct 13)