CNOOC eyes jumps in oil and gas output, LNG imports

BEIJING, July 20 Sun Jul 19, 2009 11:30pm EDT

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BEIJING, July 20 (Reuters) - State-owned China National Offshore Oil Corporation (CNOOC) aims to have 50 million tonnes per year of liquefied natural gas (LNG) receiving capacity by 2020, a company executive was quoted as saying over the weekend.

CNOOC, China's largest offshore oil producer, runs its oil and gas production businesses via listed CNOOC Ltd (0883.HK) (CEO.N).

The leading Chinese LNG developer recently won approval to build its fourth LNG receiving terminal along China's coast, which would be able to take up 3 million tonnes of the fuel a year when it is ready in 2012.[ID:nPEK112588]

The four terminals would have total capacity of around 12.3 million tonnes per year in their first phase of operations.

"CNOOC, along with Sinopec (0386.HK) and PetroChina (0857.HK), will raise crude oil production in Bohai Sea to 52 million tonnes by 2020 from less than 20 million tonnes in 2007," Zhou Shouwei, a deputy general manager of CNOOC, was quoted by state news agency Xinhua as saying at a forum.

"CNOOC would account for four-fifths of that output."

The expected output in Bohai of the three oil majors would match peak production in Daqing, China's largest oilfield, which has seen output dwindling for some years, however.

CNOOC will also add tens of billions of yuan of investments in the deepwaters of the South China Sea to increase natural gas production capacity to 40-50 billion cubic metres per annum by 2020, Zhou said.

The LNG projects, Bohai Sea and South China Sea will make up CNOOC's three "offshore Daqing", Zhou was quoted as saying in the report posted on Xinhua's website (www.xinhuanet.com).

CNOOC has committed to invest about 20 billion yuan in Zhuhai city in southern Guangdong province to build a range of facilities including a gas terminal and deepwater engineering equipment. (Reporting by Jim Bai and Chen Aizhu; Editing by Clarence Fernandez)

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