PetroChina announced on November 2nd that it had discovered an oil field in the northwestern region of the Xinjiang province and that it plans to tender at least 11 onshore concession blocks in 2001.
The oil field discovery, in the southern part of the Junggar Basin, covering an area of 10 square kms, promises crude reserves of at least 60 million tones. The Ka-6 well in the surrounding area is currently producing 104 b/d of oil and 10,000 cubic meters of natural gas a day.
Oil exploration has been conducted in the area for 50 years, and the oil field is only 25 miles from PetroChina’s Dushanzi Petrochemical Co., which has a refining capacity of 6 million tones.
The new concessions to be offered next year include three oil exploration blocks in northwest Xianjiang’s Tarim Basin and eight oil and gas exploration and development blocks in the northwest Ordos Basin.
The company is also considering tendering blocks in the Junggar Basin, the company’s top oil and gas producing area in western China.
The Tarim and Ordos basins also rank among the biggest producing areas in western China, producing 6.42 million tonnes and 4.18 million tonnes of crude, respectively, in 1999.
The Junggar and Ordos basins yielded 1.5 billion and 1.2 billion cubic meters of gas, respectively, in 1999.
Blocks in the Ordos basin are thought to be particularly attractive, given that China plans to build a 4,167-km gas trunkline through the region in the coming three to five years.