CNOOC develops China’s largest offshore gas field, aiming to build a “Deep Sea Daqing””

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Development of China’s largest offshore gas field underway, bringing huge opportunities to Hainan
It marks the beginning of deep-sea oil and gas exploration in China
CNOOC will start developing the Liwan 3-1 deep-water gas field
With a total investment of $6 billion to $10 billion, operation is expected to begin by the end of 2012
This will bring significant development opportunities for the province’s energy-related industries and petrochemical sector
Haikou, February 25 (Reporter Tan Lilin) – The development of Liwan 3-1 deep-water gas field, China’s largest and deepest offshore gas field, will officially commence in the near future. This energy project, with an investment range of $6 billion to $10 billion, is scheduled to go into operation by the end of 2012, thus marking the start of deep-sea oil and gas exploration in China. 　　Zhou Shouwei, vice president of China National Offshore Oil Corporation, announced this exciting news to reporters from Hainan Daily here today. 　　Zhou Shouwei told reporters that the waters surrounding Hainan and the eastern part of the South China Sea have always been key areas for CNOOC’s operations. Currently, there are more than 20 oil and gas fields as well as over 40 drilling platforms operated by CNOOC in these areas, and the scale of extraction and production there account for half of China’s total marine oil and gas output. During the 20 years of exploitation to date, the oil and gas fields in the South China Sea, including the Dongfang Gas Field and the Ledong Gas Field located in the waters surrounding Hainan, have contributed nearly 20 million tons of natural gas in terms of oil and gas equivalent to China – an amount equivalent to half of the oil and gas output of the Daqing Oil Field. 　　Zhou Shouwei said that the development and utilization of marine mineral resources is a crucial area for meeting energy demands, and the South China Sea is one of the regions in China with the greatest potential for deep-sea oil and gas exploration and development. Therefore, CNOOC plans to invest 200 billion yuan over the next 20 years to boost the development of oil and gas resources in the South China Sea, aiming to create a \"deep-sea Daqing\". By 2020, CNOOC expects to have the capacity to produce 50 million tons of oil and gas equivalent per year in the deep-water areas of the South China Sea. 　　The Liwan 3-1 deep-water gas field, located in the eastern South China Sea, is China’s first deep-sea gas field. Its proven reserves range from 100 billion cubic meters to 150 billion cubic meters, with an annual production volume expected to be between 5 billion cubic meters and 8 billion cubic meters. CNOOC has already begun the preliminary work for exploitation, and the natural gas produced there will primarily supply the coastal areas in southern China. 　　Zhou Shouwei said that with the development of the Liwan 3-1 gas field and the gradual advancement of oil and gas exploration and production in the deep waters of the South China Sea, significant development opportunities will arise for the energy-related industries as well as the petrochemical industry in China’s southeastern coastal areas and Hainan. He said that within CNOOC’s strategic framework, Hainan is one of the most important investment areas; in the future, CNOOC will develop Hainan into three major bases: a chemical production base, a base for offshore exploration, development, and supply, and an offshore production base. He pointed out that this is a strategic choice that meets the needs of the **energy industry while also promoting local economic and social development. (Responsible Editor: Tian Ying)