BEIJING�China National Offshore Oil Corp. has started commercial production from an oil and gas field in the Bohai Sea off northern China. Qikou 17-2, in the western part of the Bohai Sea, 45 km from Tianjin, has estimated reserves of 16.55 million tonnes of oil in a 9.1 sq km area.
The field is expected to produce 300,000 tonnes/year of crude over its 15-year life span. A 1993 discovery, the field has been under development since 1995 at a cost of 1.3 billion yuan.
It is one of three Bohai Sea fields deemed "marginal" by China. Oil is being produced from four platforms linked to a terminal by a 200-km subsea pipeline. The other two fields have been producing since 1997 at 500,000 tonnes/year of crude and 380,000 cu m/day of gas.
CNOOC had discovered six marginal oil and gas-bearing structures in a 700 sq km area of the Bohai Sea. The six have total proven reserves of 50 million tonnes of oil and 10 billion cu m of gas.
CNOOC is targeting September of this year to launch its initial public offering on the New York and Hong Kong stock exchanges, looking to raise as much as $2.5 billion. Its first IPO attempt was canceled last October.
