China National Offshore Oil Company Limited (CNOOC Ltd.) announced on Friday that it has discovered oil in Bohai Bay.

The oil was found in the Yellow River Mouth Sag in Bohai Bay with a water depth of 21.4 meters. The well, started in January this year, was drilled to a total depth of 3,070 meters.

The well encountered gas bay zones of 34.5 meters and oil zones of 13 meters. It was tested to flow at 760 barrels of oil per day, said sources with the company.

This is the first discovery CNOOC Ltd. has made in 2006. The company will drill appraisal wells to prove the commercial nature of the discovery in the near future.

Incorporated in Hong Kong in August 1999, CNOOC Limited is a 70.64 percent held subsidiary of China National Offshore Oil Corporation (CNOOC), China's largest offshore oil and gas producer.

Source: Xinhua