Oil Output in Bohai Bay Will Increase Greatly in Next Five Years

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Researched by Industrial Info Resources (Sugar Land, Texas)--China National Offshore Oil Corporation (CNOOC) (Beijing) is planning to build a large-scale light oilfield in Bohai Bay, according to Yang Hua, Vice President and Chief Financial Officer of CNOOC. He believes that the oil output from CNOOC and its partners in the Bohai Bay Oilfield will surpass the output in the Shengli Oilfield in the next five to six years. Shengli Oilfield is one of the largest oilfields in northern China. Its crude-oil output reached 27.7 million metric tons in 2007 and 13.8 million metric tons in the first half of this year.

CNOOC currently has 13 projects planned in Bohai Bay, said Chen Bi, Vice President of CNOOC. Development of these projects is expected to be completed by 2010. Together with 12 projects currently under construction, the output of Bohai Bay could surpass the output of the Shengli Oilfield in two to three years.

CNOOC's geological reserve of crude oil in Bohai Bay will reach 4 billion cubic meters, and the reserve-replacement ratio is expected to reach 100%, predicted Chen Bi. The expected oil output in Bohai Bay this year will be 99 million barrels. The output in 2006 was 98 million barrels, accounting for 39% of the total output of CNOOC that year. It's expected that the output of the Bohai Bay Oilfield will have an annual growth rate of 7% to 11% from 2006 to 2010.

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