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New Oil Reserves Discovered in Bohai Bay
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China National Offshore Oil Company Limited (CNOOC Ltd) announced on Tuesday that it has made a new independent discovery of oil deposits in east China's Bohai Bay after a wildcat operation.

The discovery, Bozhong (BZ) 28-2S-1, is located on Structure BZ28-2S in the Yellow River Mouth Sag of central-southern Bohai Bay. The well hit its target depth of 2,125 meters, with a water depth of about 22 meters.

The drilling started in February. The well penetrates oil layers with a total thickness of 85 meters and gas sections eight meters thick.

Two drill stem tests were conducted over two intervals with a combined flow rate of about 1,900 barrels of oil and two million cubic feet of gas per day via 7.94 mm and 12.7 mm chokes, respectively.

Further appraisal work will be conducted to evaluate the commercial value of the discovery, according to CNOOC Ltd.

According to preliminary estimates, BZ28-2S is one of the largest discoveries among those made by CNOOC Ltd. in the Bohai Bay area in recent years, said Zhu Weilin, vice president of CNOOC Ltd. and general manager of the exploration department.

Incorporated in Hong Kong in August 1999, CNOOC Limited is a 70.64 percent-held subsidiary of China National Offshore Oil Corporation (CNOOC), China's largest offshore oil and gas producer.

(Xinhua News Agency March 29, 2006)

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