Major oil company BG Group strike gas in its very first attempt on China soil as gas was discovered in the deepwater Qiongdongnan basin in the South China Sea.
In a statement issued here the company said the Lingshui 22-1-1 exploration well on Block 64/11, about 130 kilometres offshore, encountered gas-bearing sands.
It will now conduct further analysis of the well results to increase understanding of the hydrocarbon potential in the Block.
"This is an encouraging result from our first well offshore China, where our licence area encompasses three Blocks spanning some 15,000 square kilometres adjacent to large and rapidly growing Chinese gas markets," chief executive Frank Chapman said.
BG, operator of the Block with a 100% working interest, plans to drill a second well early next year. If a gas or oil field located on the Block gets development approval, state-run CNOOC has the right to buy up to 51% and would contribute to the cost of development.
In a statement issued here the company said the Lingshui 22-1-1 exploration well on Block 64/11, about 130 kilometres offshore, encountered gas-bearing sands.
It will now conduct further analysis of the well results to increase understanding of the hydrocarbon potential in the Block.
"This is an encouraging result from our first well offshore China, where our licence area encompasses three Blocks spanning some 15,000 square kilometres adjacent to large and rapidly growing Chinese gas markets," chief executive Frank Chapman said.
BG, operator of the Block with a 100% working interest, plans to drill a second well early next year. If a gas or oil field located on the Block gets development approval, state-run CNOOC has the right to buy up to 51% and would contribute to the cost of development.
