Oil hunt reaches new depths

CHINA National Offshore Oil Corp is planning to invest 200 billion yuan (US$29 billion) with its foreign partners in deep-water exploration in the South China Sea, in what analysts said could more than double its net production.

The investment, to be spent between 2009 and 2020, will come from China National and its listed units including CNOOC Ltd and China Oilfield Services Ltd, as well as overseas partners, CNOOC investor relation manager Xiao Zongwei said yesterday.


“The expenditure will cover the upstream sector, but also some downstream operations,” he said.

The plan was unveiled despite the worsening financial crisis and collapse in crude oil prices which have forced some international oil majors to delay projects, underscoring China’s effort to stimulate growth and the firm’s strategy to make deep-water operations its long-term growth driver.

The spending is expected to bring geological oil and gas reserves of 22 billion barrels of oil equivalent (boe) by 2020.

Shanghai Daily