CNOOC find estimated to hold over 100 Bcm

CNOOC Limited

CNOOC Limited

09 February 2015 – A deep-water natural gas discovery in the northern part of the South China Sea has certified proven reserves exceeding 100 billion cubic metres, making it one of China’s biggest offshore finds, according to reports.

Offshore oil and gas specialist CNOOC Ltd announced the discovery last August after striking high flows of gas in the Lingshui 17-2 well, with per day production of 56.5 million cubic feet.

The well, at operational depth of 1500 metres under the sea, lies about 150 kilometres south of the Chinese island province of Hainan.

The Ministry of Land & Resources has now estimated the reserves at 100 Bcm, according to state television.

The report said it would be one of the largest gas finds for offshore China, and would mark a breakthrough in drilling high-temperature and high-pressure reservoirs.

Analysts have said commercial development of the field would take years, and CNOOC Ltd’s latest plan to slash capital expenditure to counter low oil prices could affect drilling programmess of more costly deep-water wells.

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