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December 10, 2009

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CNOOC and partner discover deep-water gas

CHINA National Offshore Oil Corp announced yesterday that its partner Husky Oil China Ltd, a subsidiary of Canada-based Husky Energy Inc, has made a new deep-water gas discovery in the South China Sea.

The Liuhua34-2 finding becomes the second deep-water gas discovery following the Liwan3-1 discovery, made by CNOOC and its partner in the Pearl River Mouth Basin in the South China Sea.

The Liwan3-1 find was made on Block 29/26 in the South China Sea in 2006. The Liuhua34-2 discovery is also in the same block.

The discovery well, Liuhua34-2-1, is located about 23 kilometers northeast of Liwan3-1 gas field. The total vertical depth of the well is 3,449 meters, and the water depth in the area is about 1,145 meters.

Test results of the well show that it produced 55 million cubic feet of natural gas per day, which indicates the well's future deliveries could exceed 140 million cubic feet daily.

Zhu Weilin, executive vice president of CNOOC, said the Liuhua34-2 shows the huge potential in the deep-water area in the South China Sea.


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