By the OGJ Online Staff
HOUSTON, Dec. 27 -- China Petroleum & Chemical Corp. (Sinopec) and China National Offshore Oil Corp. will build four platforms to develop the Chunxiao complex in the East China Sea.
CNOOC had said it would bring Chunxiao structure in the Xihu Trough on stream in 2004 (OGJ, Dec. 17, 2001, p. 58). The complex, 300 km off Shanghai, is made up of four gas fields: Chunxiao, Tianwaitian, Canxue, and Duanqiao.
Production will be transported to Zhejiang province via an offshore pipeline.
The two companies must jointly approve the project. Then the State Development Planning Commission will consider their application.
Sinopec and CNOOC have invited Royal Dutch/Shell Group and Unocal Corp. to participate in E&P activities in the East China Sea. The two companies have bought the data package from Sinopec and CNOOC.
Currently, Sinopec and CNOOC each hold a 50% stake in investments to develop the oil and gas reserves.
CNOOC, which is the designated operator for exploration and production in Xihu Trough, plans to drill 4-6 exploration wells early next year at a cost of $200 million.
The Xihu Trough has 500-800 billion cu m of proven natural gas reserves.