By OGJ editors
HOUSTON, Aug. 6 -- CNOOC Ltd. said preliminary appraisal results of the company's Panyu 30-1 and Panyu 34-1 discoveries, made late last year, have confirmed and delineated the scope for recovery of natural gas reserves, estimated to be 1.5 tcf of OGIP.
"(These discoveries represent) the first major natural gas discovery in the Pearl River Mouth of South China Sea, which opens new exploration prospects in the area," said Zhou Shouwei, CNOOC Ltd. president.
CNOOC's preliminary development plan calls for "an integrated design to add productions from smaller reserves in the area to capture further economics. It is targeting the fast growing Guangdong market," the company said, adding that it expects to invest about $500 million in initial capital expenditure.
CNOOC Ltd., which is a 70.6% held subsidiary of China National Offshore Oil Corp., holds 100% interest in both Panyu 30-1 and Panyu 34-1.