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CNPC finds oil, gas shows in disputed waters in South China Sea

BEIJING -- The petroleum drilling and exploration operation of Zhongjiannan Project was smoothly completed on schedule on July 15th with the oil & gas shows found. In accordance with the work procedures of deep-sea petroleum exploration and development, a comprehensive assessment of hydrocarbon horizons is to be implemented based on the geological and analytical data collected through the drilling and exploration operation. Next phase arrangements are subject to the aforesaid comprehensive assessment.

Since 2004, China National Petroleum Corporation (CNPC) has been conducting geophysical prospecting activities mainly for seismic data acquisition in this sea area based on intensive and comprehensive geological study. As a result, the exploration targets were locked, and the well locations were identified. In 2013, well site survey was conducted.

CNPC started the drilling of two exploratory wells of Zhongjiannan Project on May 2nd this year, and finished the drilling of No.1 exploratory well on May 27th. We started drilling No.2 well on May 28th, and the drilling of this well completed on July 16.

The operation is undertaken by the drilling platform HYSY-981 run by China Oilfield Services Limited (COSL).



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