BEIJING (Reuters) - Sinopec, China’s second largest oil and gas group, will build a crude production hub with a 1.5 million tonnes annual capacity in Tarim basin between 2016 and 2020, the company said on its official Weibo microblog on Monday.
Sinopec’s Shuibei oil field, a new discovery in the middle west of the Tarim basin, has oil reserves of 1.2 billion tonnes and 500 billon cubic meters of natural gas deposit, it said.
The company plans 10 exploration wells at the Shuibei oil field, having completed drilling eight of them. Six of the wells produce high quality oil with commercial values.
Sinopec holds a total of 32 oil reserve blocks in the Tarim basin, it said.
Reporting by Meng Meng and Beijing Monitoring Desk; Editing by Himani Sarkar