BEIJING�Agip China BV will invest $8 million for gas exploration the next 2 years in the Sebei block in northwestern China's Qaidam basin.
Agip and China National Petroleum Corp. signed a deal in May this year. Agip and PetroChina Co. Ltd., a subsidiary of CNPC, have set up a joint management committee to manage the exploration.
The Sebei block covers 6,998 sq km. Agip China estimates it holds 250 billion cu m of gas resources. PetroChina has discovered six gas fields in the block, with combined proven reserves of 130 billion cu m.
Gas production from the block will be moved through a 953-km pipeline to Xining, the capital of Qinghai province, and Lanzhou, the capital of Gansu province.
The line is under construction and due completion in October 2001 (OGJ Online, June 5, 2000).
Agip is exploring and producing oil and gas from in the South China Sea, Bohai Sea, and the Tarim Basin of China.
Qaidam is one of China's relatively unexplored areas. Last year, PetroChina unit Qinghai Oil & Gas Corp. produced 360 million cu m of natural gas from Qaidam basin.
