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More oil found in the South China Sea
( 2001-06-14 00:28 ) (9 )

An international oil consortium led by the China National Offshore Oil Corp (CNOOC) has announced the discovery of two oilfields in the South China Sea.

The group, named CACT Operators Group, was formed by CNOOC, Agip China, Chevron Overseas Petroleum and Texaco China.

It said the two pockets together are expected to yield at least 11,000 barrels of oil a day.

The two fields, with a total area of 2.6 square kilometres, are located in the Pearl River Mouth Basin of the sea, 150 kilometres southeast of Hong Kong.

CNOOC holds a 51 per cent stake in the fields, while the other three partners have 16.3 per cent each.

A spokesman for CACT said the new fields are next to oilfields the consortium is already operating, with daily production of 100,000 barrels. He said this would help production at the new fields as some of the same facilities can be used.

The spokesman said more assessments are taking place in the fields and they will begin operating after these are finished. Peter Robertson, president of Chevron, said the new discoveries have proven that the Pearl River Mouth Basin is a valuable asset and will spark the enthusiasm of foreign investors in the area.

Earlier this year, Devon Energy of the United States also found oil and natural gas in the area, with potential oil production of 1,602 barrels a day and gas production of 2,132 million cubic feet a day.

CNOOC said the finds have demonstrated for the first time that the area boasts rich oil reserves.

Ru Ke, senior executive vice-president of CNOOC Ltd, a listed arm of CNOOC, said, "We have had a number of successes to date and continue to be very optimistic about exploration potential in the area.''