The Chinese branch of US-based Kerr-McGee Corporation, one of the world's largest independent oil and natural gas prospecting companies, announced on Friday that the company's four producing wells in China's Bohai Bay have been producing oil since July 18.

The company said its daily oil production capacity in Bohai Bay could amount to 15,000 to 20,000 barrels per day when all 10 of its producing wells are put into use starting at the end of July.

It will set up more producing wells in Bohai Bay, one of China's most important offshore oil exploitation bases, over the coming two years, increasing its daily oil production capacity here to 40,000 to 45,000 barrels by mid 2005.

"We have advanced the scheduled oil production time from the fourth quarter of 2004 to the third quarter and plan to produce a total of 150 million barrels of crude oil before 2006, the year the company's second-phase oil exploitation will kick off at the bay," said Dave Hager, vice president of the Chinese branch of Kerr-McGee.

China National Offshore Oil Corporation (CNOOC) owns a 51 percent stake in the oil field on which Kerr-McGee's wells are located.