ConocoPhillips eyes sale of China onshore gas field

U.S. oil firm ConocoPhillips (COP.N: Quote, Profile , Research) is looking to sell a gas field in China's southwestern Sichuan province, a company spokesman said on Thursday, although it only acquired the asset last year. The company has a 100 percent working interest in the 295,000 acre Chuan Zhong Block, which holds the Ba Jiao Chang gas field. The block operator is ConocoPhillips unit Burlington Resources. "We are in the process of marketing the asset, but have not yet concluded a sale," a company spokesman said. He declined to comment further.

Pilot production at the block began in 1999, and in 2006 last year gross production averaged 10.3 million cubic feet of natural gas per day, the company said on its Web site. China is keen to step up development of domestic oil and gas resources as its reliance on overseas supplies grows faster than its overall demand for crude.

Imports account for nearly half its oil.

But it also keeps a tight cap on refined oil and gas prices, currently well below international levels and eating into oil company profits, because of fears about inflation and social unrest.