CNOOC's 'Paracels Islands' rig makes major deepwater gas field discovery

China National Offshore Oil Corp said yesterday that its semi-submersible rig, a structure that was at the centre of a dispute with Vietnam, had found a deepwater gas field about 150km south of Hainan, in the northern part of the South China Sea.

A high volume of natural gas flows was found last month in the Lingshui 17-2-1 well, Xinhua reported, quoting CNOOC manager Xie Yuhong. Tests determined it produced 56.5 million cubic feet of gas per day at an average operational depth of 1.5km, the report said. The well was not in a disputed area.

It is the first significant deepwater gas discovery by the CNOOC 981 rig that led to a deterioration in ties between China and Vietnam in May. Beijing had deployed the rig to waters near the Paracel Islands, which are claimed by both Beijing and Hanoi.

A series of deadly anti-China riots then swept through Vietnam, killing at least four people. The tensions lasted two months until the rig was moved to the Lingshui well in July.

Beijing denied it was moved because of criticisms from Vietnam, saying calm seas meant the rig completed its work one month ahead of schedule.

The exact exploitable reserves of Lingshui are subject to confirmation, but Xie said a large gas field usually meant at least 30 billion cubic metres was available.