CNOOC, China United Coalbed Methane to Work Together in CBM Sector

CNOOC has signed an agreement with China United Coalbed Methane Corporation, or CUCBM, on exploration, development, production and sale of coal bed methane.

Cnooc China expects to incur total budget expenses of about 9.93 billion yuan ($1.56 billion) for exploration costs, Dow Jones reported citing a company statement. The two companies have decoded to work together for 30 years. 

Under the agreement, exploration would cover a 10,866 sq km (4,195 sq miles) area in Shanxi, Shaanxi, Anhui, Shandong, Yunnan, Ningxia, Hebei, Hubei and Henan provinces, CNOOC said.

CUCBM engages business include exploration, development, production and transportation of coalbed methane in China, CNOOC Ltd. said in the statement, adding the agreement offers an opportunity for the oil producer to develop its business in the clean energy and onshore China sectors.

Meanwhile CNOOC announced that its Yacheng 13-4 gas field has recently commenced production successfully.

Yacheng 13-4 is located about 72 kilometers southwest of Sanya, Hainan Province, in the north part of the South China Sea with an average water depth of about 85 meters.

This project was designed to share the existing facilities of Yacheng 13-1 gas field and built three new subsea production equipments for overall development. Three development wells have also been arranged. Yacheng 13-4 is expected to hit its peak production of 0.35 billion cubic meters per annum in 2013.