BEIJING�China National Offshore Oil Corp. (CNOOC) is expected to focus on gas exploration and production over the next 5 years.
An initial plan calls for the company to develop 370 billion-600 billion cu m of gas reserves by 2005 in order to increase production to 10 billion cu m/year from 4 billion cu m now. CNOOC holds 304 billion cu m of gas reserves offshore.
The company plans to use the bulk of the funds raised from its planned initial public offering on New York and Hong Kong stock exchanges�expected in February�on gas exploration and production.
It plans a feasibility study this year with Royal Dutch/Shell Group for a 2,000-km gas pipeline skirting China's eastern coast. It would move gas from the South China Sea, East China Sea, and Bohai Sea to markets in eastern provinces.
CNOOC will center its gas exploration and production in the Yinggehai and Qiongdongnan basins in the South China Sea, following exploration failures last year in East China Sea�s Xihu Sag, a gas province. CNOOC's partners in Xihu Sag are Shell and Sinopec Star Petroleum Co. Ltd.
