CNPC Finds Large Oilfiend in Bohai Bay with Reserve up to One Billion Tons

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Researched by Industrial Info Resources (Sugar Land, Texas). The newly found oilfield in Bohai Bay, the Jidong Nanpu Oilfield, has a reserve of one billion tons, or about 7.35 billion barrels, announced the China National Petroleum Corporation (CNPC) on May 3.

The oilfield lies in the Nanpu block of the CNPC's Jidong Oilfield in the Caofeidian port area in Tangshan City, in north China's Hebei Province, where it belongs to the exploration scope of Jidong Oilfield Company, a subsidiary of CNPC. The Nanpu block, partly offshore, covers an area of 1,570 square kilometers, including 570 square kilometers of land and 1000 square kilometers offshore. By 2004, CNPC had discovered five onshore oil fields in the Jidong area with a total reserve of 100 million tons and an annual output of one million tons.

Oil exploration in the Jidong area started in 1988, but with no material breakthrough for fourteen years both in independent and joint explorations. Adjustment has been made by CNPC to enhance the exploration in this area since 2002. Material breakthrough was achieved in the Laopunan No.1 well in September 2004. A high yielding industry oil well with a daily output of 700 cubic meters was obtained in Ordovician, and the daily output is kept on 200 tons and above during the 22 month trial operation. In the last two and half years of overall exploration, four oil structures have been found in Jidong Nanpu Oilfeild, a geological oil and gas reserve with an equivalent weight of 1.02 billion tons has been developed, including 405 million tons of verified reserve, 298 million tons of control reserve, 202 million tons of forecasted reserve, 140.1 billion cubic meters of natural gas (dissolved gas), and a geological reserve equivalent to 111.6 million tons of oil.

The company previously estimated that the reserve of the new oilfield was 2.2 billion barrels and the daily output would be 200,800 barrels in three years.

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