China National Offshore Oil Corp (CNOOC), the country's largest
offshore oil producer, will invest some 120 billion yuan (US$14.6
billion) in tapping oil reserves in China's offshore waters
in the next five years, insiders said.
Over 75 percent
of the total investment will come from CNOOC and the rest
from foreign sources, said a senior official from the company
who declined to be named.
CNOOC, which established
a strategic alliance with the Royal Dutch/Shell Group of Companies
early this month to jointly explore and tap oil and gas fields
in the Bohai Bay and gas reserves in the Xihu Trough of the
East China Sea, is now planning to double its oil and gas
output from 1999's approximately 20 million tons to 40 million
tons in 2005.
"China will
heavily rely on the oil reserves in its offshore waters in
the future," said Zeng Hengyi, deputy general engineer
of the company.
Statistics indicate
that around one fourth of China's oil reserves in its offshore
waters have yet to be exploited.
Zeng said the total
investment in a large offshore oil field usually reaches US$2-3
billion.
According to the
current practice of cooperation between CNOOC and overseas
partners, the latter will shoulder all responsibility for
exploration and conduct well-drilling during the exploration
period.
If any valuable
reserves are found, CNOOC will be given a 51 percent share
in it.
(China Daily 11/28/2000)
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