(Sxcoal, Dec 30, 2006) China National Offshore Oil Corp will start 16 oil, gas and chemical projects in 2007, three more than this year, as it tries to more than double output in five years.

The nation's third-largest oil company will work on 60 projects locally and overseas in 2007, covering exploration and production, oil refining and chemicals, the Beijing-based company said on its Website. It planned 46 projects this year and 13 started production.

China National Offshore Oil, the parent company of Hong Kong-listed Cnooc Ltd, aims to produce the equivalent of 100 million tons of oil and gas in 2010 from 39 million tons in 2005. Cnooc spent US$2.7 billion on Nigerian fields this year as it scoured Africa and Asia for reserves.

"Energy resources are getting scarce and creating new challenges in project management," the company said. "We need to strengthen management to ensure projects start production on schedule."

Stable output

China National Offshore worked on 21 oil and gas production projects this year, and eight started operation. The company's focus next year will be slowing the depletion of resources in older fields and keeping production stable, it said.

China National Offshore is building liquefied natural gas terminals on China's coast near Shanghai and in the southeastern province of Fujian, and a seven million-ton-a-year refinery in Huizhou in the southern province of Guangdong, Bloomberg News reported. That refinery is scheduled to start operating in 2008.

Cnooc and partner Husky Energy Inc in June discovered a deep-water gas field in the Pearl River Delta that may prove to be China's largest offshore deposit of the fuel.

Source:Sxcoal