China Confirms PetroChina 100 BCM Gas Find in Xinjiang

BEIJING (Dow Jones Newswires), Dec. 15, 2008

China has confirmed PetroChina Co.'s discovery of a major gas field, with proven reserves of 100 billion cubic meters in Xinjiang Uygur Autonomous Region, the Xinhua News Agency reported Monday, citing the National Mineral Resource Committee.

The Klameli field, located in the Junggar basin in northern Xinjiang, is PetroChina's largest gas find in the area, Xinhua said, adding it was found in 2006 and more test wells were drilled in 2007 to confirm the magnitude of the reserves.

PetroChina expects the field to produce 1 billion cubic meters of gas a year for at least 50 years and may increase its annual output, Kuang Lichun, vice general manager of PetroChina unit Xinjiang Oil Field Co., was quoted as saying.

Xinhua didn't say when the company will start production in the field.

The basin has possible gas reserves of 2.5 trillion cubic meters, according to a national survey of oil and gas resources, Xinhua said.

PetroChina is expected to produce 3.38 billion cubic meters of gas in the Junggar basin this year, and raise it to 5 billion by 2010.

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