CNPC exploratory drilling near Paracels complete

Want China Times, Xinhua and Staff Reporter 2014-07-16

The Chinese oil rig near the Paracel Islands, May 11. (File photo/CNS)

State-owned China National Petroleum Corporation, announced on Tuesday the completion of drilling and exploration off the Paracel Islands in the South China Sea.

Signs of oil and gas were found in the operation, known as the Zhongjiannan Project, and the company will assess the data collected and decide on the next step, a statement from the company read.

The company started drilling two wells in May and completed the work on the first well on May 27, while drilling on the second well ended Tuesday.

The drilling rig provided by China Oilfield Services will be relocated to operations in Hainan.

Qiu Zhongjian, a geologist from the Chinese Academy of Engineering, said that the drilling was well organized, as the company fully considered geological hazards, engineering issues and possible typhoons.

He said he was firmly opposed to Vietnam's disruption during China's drilling operations as, he said, the project area lies in the "undisputed sea area of China's Xisha [Paracel] Islands."

Large-scale riots were seen in Vietnam, with looting of businesses identified as Chinese, in response to China's deployment of the oil rig to the area near the islands, which Vietnam claims is in its exclusive economic zone, along with the islands themselves.

Preliminary analysis of the geological data acquired has shown that the area has the basic conditions and potential for oil exploration, but extraction testing cannot begin before a comprehensive assessment of the data, said Wang Zhen, deputy director of the company's Policy Research Office.

For safety reasons, the test operation was not arranged immediately, because July is the beginning of the typhoon season.

While the project may help improve understanding of the engineering and geological issues in the South China Sea, the development of "deep-sea drilling technology" will also bring economic benefits, said Wang.