CHINA - A medium-sized oilfield has been found in China's northern Inner Mongolia Autonomous Region, the Zhongyuan Oil Exploration Bureau, a subsidiary of Sinopec Group (China Petroleum and Chemical Corp), announced yesterday.
According to Shang Ruibin, an official with the bureau's geophysical exploration company, preliminary drilling shows that the discovery, located in Inner Mongolia's Wulate Rear Banner, has a proven reserve of about 140 million tons. He said that further test drillings would be carried out covering 388 square kilometres around the primary find to collect full information on the oilfield.
Current test drilling has also indicated that the oilfield will yield sweet crude oil, which is thought to be higher quality and easier to process in refineries. Shang said the preliminary exploration, which has cost about 130million yuan to date, should be concluded by the end of this month, a bout a year before formal production from the oilfield could be started.
The Sinopec Group, parent of the publicly listed Sinopec, usually takes on high-risk upstream exploration work. Only profitable assets like oil fields with a stable output would be brought into the listed company.
Reported Cristina Gallardo, write to This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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