China National Petroleum Corporation (CNPC), China's largest oil and gas producer, on Monday announced that Luojiazhai gasfield, its gas producing unit jointly developed with U.S. oil firm Chevron in eastern Sichuan province, has started pumping natural gas from some drilling wells.
The operating facilities are built as the first phase construction of Luojiazhai gasfield, including Gunziping gasfield, with a designed annual output capacity of 3 billion cubic meters of natural gas.
In 1995, CNPC, the parent company of PetroChina (PTR.NYSE; 601857.SH; 00857.HK), discovered industrial natural gas flows in Du-1 gas well in Feixianguan at eastern Sichuan, which marks a start of high-sulfur natural gas block exploration and development.
CNPC and Chevron signed a contract to jointly develop natural gas in Northeast Sichuan Co-op Block of Sichuan Basin in 2008. Unocal, a wholly-owned unit of Chevron, serves as the operator of gasfield. Northeast Sichuan Co-op Block is located in Xuanhan County, Wanyuan City and Kaixian County of southwest China's Sichuan province, with an area of 800 square kilometers. As the largest inland oil and gas Chinese-foreign cooperation project, Northeast Sichuan Co-op Block plans three phases of development.
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