InterFax
08:19 GMT, Jul 10, 2006

Shanghai.  July  10  INTERFAX  CHINA  -  The  China  National  Petroleum Corporation  (CNPC),  the  country's  top  oil  developer,  has  made  a discovery of natural gas in Fuhai County in northern Xinjiang Autonomous Region.

The Dixi  13  Well,  in the Dixi Oilfield in northern Junggar Basin, was shown to  produce  a  daily  natural  gas current of 71,790 cu m, said a local official.

CNPC completed the well-drilling in early June and the well was found to produce the natural gas on July 3, Yang Zhenghai, the secretary of Fuhai County, told China News Service, a semi-official news portal. The Chinese  oil  company  spent  around  RMB  500 mln (USD 62.5 mln) to develop the Dixi Oilfield in 2005 and is expected to invest nearly RMB 1 bln (USD 125 mln) in it this year, said Yang.

Last week,  CNPC's  domestic  rival Sinopec announced that it had made a discovery in the Songliao Basin in northeastern Heilongjiang Province. A deep well  in  the  Changliang  Sag  was shown to produce a 205,000-cu m natural  gas  current on a daily basis, which is the company's first big discovery   in   the   deep   areas  of  the  southern  Songliao  Basin, traditionally dominated by CNPC.

Officials  with  the  government  and the company were not available for comment when contacted by Interfax.