PetroChina Discovers Major Oil Reservoir in Xinjiang

BEIJING (Dow Jones Newswires), Oct. 11, 2010

PetroChina has found commercial oil flows at wells in the Mobei oilfield in the oil-rich Xinjiang Autonomous region of Northwest China, and it expects to add new crude oil reserves of tens of millions metric tons, parent China National Petroleum Corp. said in its in-house newsletter Monday.

Wells 121 and 122 in block 116 of the Mobei oilfield, have yielded oil flows, and are located in Xinjiang Junggar Basin.

The company said a high-quality uncompartmentalized light oil reservoir has been proven, and would contribute to new production capacity of million of tons in Xinjiang.

Junggar Basin is estimated to have 8.6 billion tons of crude oil resources and 2.1 trillion cubic meters of natural gas, but currently only 21.4% of the oil and 3.64% of the gas have been proven, CNPC said on its website.

PetroChina's Xinjiang oilfield is China's fourth-largest onshore oilfield. It is targeting production of 20 million tons of oil equivalent this year, or 400,000 barrels of oil equivalent a day, CNPC said.

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