CNOOC Finds 3rd Deepwater Gas Field

CNOOC says partner Husky finds 3rd deepwater gas field in South China Sea

China National Offshore Oil Company Limited (CNOOC Ltd.) announced on Feb.9 its partner, Husky Oil China Limited has discovered a new deepwater gas field in the South China Sea , Xinhua News Agency reported on Feb.9.

The LiuHua (LH) 29-1 field is the third deepwater gas discovery made in Block 29/26 of the Pearl River Mouth Basin in the eastern South China Sea , after the discoveries of LiWan (LW) 3-1 and LiuHua (LH) 34-2.

Husky Oil China Limited is a subsidiary of Canada listed Husky Energy Inc. In August 2004, CNOOC, parent company of CNOOC Ltd. signed an oil contract with Husky Energy in 29/26 block of Pearl River Mouth Basin , where LW 3-1 and LH 34-2 were discovered respectively in 2006 and 2009.

As introduced, the well, LH 29-1-1 was drilled 43 kilometers northeast of LW 3-1 field and 20 kilometers northeast of LH 34-2 field, to a total depth of 3,331 meters with a water depth of about 720 meters and encountered a thickness of 70 meters net gas reservoir.

The well was tested to flow 57 million cubic feet of natural gas per day.

LW 3-1 and LH 34-2 are expected to be developed in parallel and the former is to see initial gas production in 2013. The newly discovered LH 29-1 field will share the development and production facilities with LW 3-1 and LH 34-2, according to CNOOC's announcement.

Zhu Weilin, Executive Vice President of the CNOOC Ltd. and General Manager of exploration department, said the deepwater area is one of the major exploration efforts for CNOOC Ltd. in 2010.

The LH 29-1 field will be further appraised in 2010 by Husky to figure out its reserves.

According to the contract, CNOOC Ltd. has the right to hold up to 51 percent interest in any commercial discoveries in Block 29/26.