06-05-08 China National Offshore Oil Corporation (CNOOC) hopes to invest in oil and gas leases in the US Gulf of Mexico in two years, an executive said. Zhou Shouwei, vice president of CNOOC, said in response to a question after an Offshore Technology Conference luncheon that the company probably would bid on leases with a partner.
He only said: "We prepare for a lot of acquisitions but it is a secret."
CNOOC is studying investments worldwide, he said.
"We're looking for opportunities," Zhou said.

The CNOOC executive said in his luncheon presentation that China has built four LNG import terminals and is developing four more. China expects LNG imports to grow because demand is expected to rise to 7.9 tcf per year by 2020 while domestic supply grows only to 2.9 tcf, he said.
Zhou said CNOOC is spending $ 6 bn to buy 1.2 bn barrels of oil equivalent in reserves by 2010. The goal by 2020 is to invest $ 50 bn to reach 3 bn barrels of oil equivalent in reserves down to 3,000 meters of water depth, he said.

Part of the effort is a new approach to field development that combines primary, secondary and tertiary recovery techniques from the start of production. The goal of the new approach in CNOOC field development is to drill fewer wells and have higher initial production rates from each well, he said.
Much of China's offshore oil reserves are heavy oil, presenting production challenges, he said.

China will have half the world's offshore heavy oil production by 2010, he said.
In some offshore areas, China's seabed has "sand waves" and "sand ridges" that create additional oil and gas development challenges, Zhou said.