The largest offshore oilfield, Penglai 19-3, with proven reserves of 600 million tons, has been found recently. It is the second largest oilfield following the Daqing Oilfield ever discovered in China.

Sources say that Penglai 19-3 is 80 km to the Longkou coast of Shandong Province and 220 km from Tanggu Bohai Oilfield Base which is in a 50-sq.km. area where the water is 20 meters deep. Oil is buried in a 900-1,400 meters depth , it is of high quantity and large quality and easy to tap, having an enormous economic value. So far, seven wells have been drilled, tests indicate the oil layer is 150 meters thick.. Industrial gas and oil flow is high, providing it with broad prospects for prospecting and exploitation.

The oilfield was reportedly discovered through the joint efforts of the China National Offshore Oil Corporation and the US Philips Oil Company. The two companies will jointly exploit the oilfield and share the economic benefits.