Major Breakthrough Achieved in Bohai Oil Foreign Cooperation.

Bohai Oil Company of China Offshore Oil Corporation and Philips Oil of the United States have recently discovered a big shallow offshore oilfield with an oil reserve of over 100 million tons. It is located in a cooperation block in southern waters of the Bohai Sea. It is the first 100 million tons cooperation oilfield discovered in the Bohai Sea since the start of foreign cooperation in offshore oil. Major breakthrough has therefore been achieved in Bohai oil foreign cooperation.

The big offshore oilfield is called Penglai 19-3. It is in the middle section of the arch in southern waters of the Bohai Sea, around 70 km north of Shandong Longkou Coast. The formation area is around 50 square km and the water depth is around 20 m. Since the start of drilling on May 1 this year, an enriched oil reservoir with a thickness of over 140 m has been discovered at a depth of 900 - 1 400 m in 2 cooperation wells. The test proves that the self-spraying daily output is 110 [m.sup.3] of crude oil and over 5 000 [m.sup.3] of natural gas. The oilfield has the features of shallow burial depth, good oil quality and easy development. According to the initial estimation of Chinese and American geological experts, the controlled oil-bearing area has reached 6 square km and the reserve is close to 200 million tons, larger than the first-phase reserve in any of the three 100 million tons big oilfields discovered in the prospecting conducted by China itself in the Bohai Sea.