A joint venture of China National Oil & Natural Gas Corp. and Japan National Oil Corp. (JNOC) has begun exploration in Northwest China's remote Tarim basin in Xinjiang Uygur Autonomous Region.
That marks the first time China has allowed a foreign oil company to participate in exploration of the highly prospective basin (OGJ, May 6, 1991, p. 143). China pins much of its hope for the future on the Tarim basin as production declines from its older, mainstay fields in the east and offshore results have proved largely disappointing (OGJ, July 29, 1991, p. 25).
The Chinese-Japanese combine began operations in the southwest part of the 560,000 sq km basin. The 200 member exploration team plans to complete a seismic survey covering 3,500 line km in the Kashi and Yecheng areas during the next 4-1/2 years.
The survey follows a feasibility study that began last October covering 30,060 sq km in the basin.
Beijing's Xinhua News Service reported JNOC will invest more than $60 million in the project.
Xinhua earlier reported the Tarim basin has yielded oil reserves with productive capacity of about 100,000 b/d. Today's production is about 15,330 b/d (OGJ, May 18, p. 39).
Japan's Kyodo News Service reports there is speculation in Japan that China may invite foreign investment in developing reserves in the basin. Undisclosed sources told Kyodo China may decide to open the project to foreign operators within a year in view of an acute foreign exchange shortage.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
