New Oil and Gas Reserves Found in Hainan Province

China News Digest, 26 November 2001

[CND, 11/26/01] Vast new reserves of gas and oil were discovered in China's Hainan province, AFP reported citing Xinhua.

Situated in the Fushan Recess in the north of the Hainan province, the Huachang structure was estimated to contain 3.11 billion cubic meters of gas reserves, 1.55 billion of which could be exploited, JIANG Youzhuo, deputy general manager of the Nanfang Oil Prospecting and Development Company of the China Oil and Gas Group, was quoted as saying.

According to Jiang, the gas from the Huachang structure was high quality and clean, as it had high heat value and contained no sulphur. It's expected that more than 100,000 tons of crude oil and 100 million cubic meters of gas will be produced from the reserves annually.

Jiang added that his planned to invest 500 million yuan in further exploration of the Fushan Recess between 2001 and 2005. (Ray ZHANG)