China reports northern Xinjiang region gas find

China's National Mineral Resource Committee has reported PetroChina's discovery of a major gas field, claiming proved reserves of 100 billion cu m, in the Xinjiang Uygur Autonomous Region.

Dec 16th, 2008

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Dec. 15 -- China's National Mineral Resource Committee has reported PetroChina's discovery of a major gas field, claiming proved reserves of 100 billion cu m, in the Xinjiang Uygur Autonomous Region.

Klameli field, in northern Xinjiang's Junggar basin, is said to be PetroChina's largest gas find in the area. The field was discovered in 2006, and more test wells were drilled in 2007 to confirm the size of the reserves.

Chen Xinfa, general manager of PetroChina subsidiary Xinjiang Oil Field Co., said exploitation of Klameli field will alleviate gas shortages in northern Xinjiang.

According to Kuang Lichun, XOFC vice-general manager, Klameli field will produce 3.38 billion cu m of gas this year, about 20% of it to be sold to the cities of Urumqi and Sihezi, with the remainder reserved for the company's own use.

PetroChina expects the field to produce at least 1 billion cu m/year of gas for 50 years or more, Kuang said. Neither official said when the company expects to start production from the field.

No explanation was given for the delay in reporting the discovery.

Contact Eric Watkins at hippalus@yahoo.com.

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