The China National Offshore Oil Corp (CNOOC) will invest 4.6 billion yuan this year to develop a number of large offshore oil and gas fields to increase the country's oil and gas output equivalent to 40 million tons of oil by 2005.

According to CNOOC president Wei Liucheng, China has recently discovered a group of large oil and gas bearing structures in Bohai Bay areas and in areas of the South China Sea, including Penglai 19-3, Panyu 5-1, Caofeidian 11-1, Bozhong 29-4 and Bozhong25-1.

Among them, the Penglai 19-3 is particularly large with 300 million tons of proven crude oil reserves. Penglai 19-3 is likely to become China's second largest complete oilfield after Daqing bythe latter half of this year and be fully operational by 2004. By 2004 the oilfield expects to develop an annual production capacity of 15 million tons.

The development of other large oilfields such as the second-phase project of Suizhong 36-1, Qinhuangdao 32-6 and Wenchang 13-1/2 in the Bohai Bay will be launched this year, and 162 offshore wells will be sunk.

With the development of the new oilfields, China expects an annual average increase of 20 percent in offshore oil production between 2000 and 2005.

CNOOC produced 16.17 million tons of offshore oil and 4.39 billion cu meters of gas in 1999, earning profits of 2.75 billion yuan. (Xinhua)