Sinopec plans wildcat in disputed waters

China’s Sinopec aims to drill its first deep-water well next year in the South China Sea, ending a moratorium on exploration in waters near areas disputed by Vietnam, two company officials said.

The move marks the first foray into deep-water offshore drilling for Sinopec, which is mainly a refiner with limited experience in oil drilling. It also underlines a renewed industry interest in the search for oil in the waters off China.

Sinopec has begun a 3D seismic survey in an area of 1250 square kilometres in the Qiongdongnan basin, and drilling at the best prospects will follow, the Sinopec officials told Wall Street Journal yesterday.

Sinopec has a license to explore more than 8000 square kilometres in the basin, including some blocks in territorial waters claimed by Vietnam. However, the planned survey will be carried out in an undisputed area, the officials said.

Upsream Online