China Trade Information

PetroChina<601857><857>, the nation’s top oil producer, has commenced developing its Yuedong block in Bohai Bay, according to its parent China National Petroleum Corp (CNPC).

Located in shallow water near the Liaoning Province, the block is part of the Liaohe oilfield and abundant in reserves of heavy oil. It is designed to have an annual output of 3 million tons, or daily output of 60,247 barrels per day, said CNPC on its website.

Meanwhile, the company has worked out an overall plan for the development of the block, including construction of four artificial islands and a pipeline. It is estimated that the trial operation of six wells in the block will start in 2009.

CNPC also stated the development of Yuedong is highly risky and expensive because of active tides and a long icing period, but it didn’t disclose whether it can realize profit in the block or not during the slowdown in global oil prices.

Tags: CNPC, oil-prices, PetroChina, Petroleum

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