China’s CNOOC Ltd and Sinopec plan to start developing one of China’s largest offshore natural gas fields next year – with or without foreign help, officials have said. The two Chinese oil majors had been expected to clinch a deal with Royal/Dutch Shell and Unocal by the end of this year to explore and develop Xihu Trough in the East China Sea. But CNOOC offficials have said the talks to set up a venture had been delayed, and the Chinese firms were ready to start development on their own.
The area to be developed, with proven gas reserves of 80 billion cubic metres, included Chunxiao, Tianwaitian and Huangyan fields. Starting next year, the first phase of the project aims to build a production capacity of 800 million cubic metres a year at Chunxiao and Tianwaitian by 2005. The second phase, set to start in 2004, would bring Huangyan field to a capacity of 400 million cubic metres a year in two years. Construction of an under-sea gas pipeline would start next year from Tianwaitian field to the coastal province of Zhejiang.
