Sinopec, CNOOC Ltd make new natural gas discovery in East China Sea
Sinopec and China National Offshore Oil Corporation Limited have jointly made a new natural gas discovery in East China Sea, Dow Jones Newswire reported Friday, quoting unnamed sources.
According to the report, the new discovery is located in the Chinese territorial waters with a daily output of 400,000-500,000 cubic meters during the test drillings taken in early 2010. CNOOC is also the operator of Chunxiao Gasfield in the East China Sea. China's offshore oil and gas operation is currently an exclusive turf of the CNOOC, the parent company of CNOOC Ltd according to a law enacted in the 1980s.
Sinopec, the country's largest oil refiner and second largest oil producer, usually conducts business on onshore oil exploration, development and refining business. It has also developed its ability to overtake offshore oil and gas operation in shallow water in recent years. However, no oil companies by now, including Sinopec and CNPC, are allowed to do offshore oil and gas business without the participation of CNOOC.