CNOOC Ltd hails Bohai Bay strike

China National Offshore Oil Corporation Ltd (CNOOC Ltd) is trumpeting a "significant" oil find in Bohai Bay that it expects to be developed into a "light oilfield of considerable scale".

Three shallow-water wells have been drilled at the Jinzhou 25-1 field, striking oil and gas pay zones ranging in thickness from 54 to 261 feet, the company said in its half-year results presentation yesterday.

The wells have flowed at up to 2897 barrels per day of oil and 11.66 million cubic feet of gas per day during testing, said CNOOC Ltd, the listed operating arm of China National Offshore Oil Corporation.

The large JZ 25-1 structure is still under appraisal, CNOOC Ltd said.

The company said: "We are pleased that the Jinzhou 25-1 discovery contains abundant reserves with light crude and is expected to be developed into a large oilfield."

The field lies in water depths of about 30 metres in the Liaoxi area, also home to the JZ 21-1 field, which is currently being developed.

CNOOC Ltd's net reserves at JZ 25-1 and JZ 21-1 as of 31 December 2006 were 90 million barrels of oil equivalent, the company said.