China National Offshore Oil Corp (CNOOC) is planning the implementation of a project known as "New Daqing", which will involve the investment of 200 billion yuan (US $29 billion) in developments in the South China Sea, China Buisness News reported on December 15 2008. The plan has been approved by the State-owned Assets Supervision and Administration Commission of the State Council and will be launched next year.

The expenditure will focus on oil-gas exploration in the South China Sea. Over the next two decades CNOOC plans to develop a super-oilfield which will produce 50 million tons of oil-gas per year, equal to the largest of China's current oil fields, "Daqing oilfield".

Xiao Zongwei, an official of CNOOC, revealed that they will focus on deepwater and ultra-deepwater oil-gas exploration and exploitation, descending to depths of 1500-3000 meters, especially in the upper reaches of the sea. Reserves estimated at 3.1 billion tons of oil-gas have been detected in the deepwater areas.

Although CNOOC possesses mature exploration technology, the company will nonetheless look for international partners to add advanced technology in the form of joint ventures. Husky Energy Inc. and Newfield Exploration Co. will come in on the scheme, according to the official.

"The total cost will be 200 billion yuan, including our partners' investment", said the official. The plan carries the project through to 2020, and the final budget will be completed based on the situation as it presents itself in practice.

Fore more details, please read the full story in Chinese. (http://www.cs.com.cn/ssgs/02/200812/t20081216_1684842.htm)

(China.org.cn December 16, 2008)