CNOOC to Form Pipeline Unit

China National Offshore Oil Corp. will set up a joint venture to make pipelines along with a local private company. The move represents CNOOC Ltd.'s first foray into the petroleum pipeline manufacturing business. It is expected to help meet its rising demand for pipelines following acquisitions of overseas oil and gas assets. The joint venture will have a pipeline output capacity of 300,000 tons a year. CNOOC has started operations at a new oil field in Bohai Bay off the coast of northeastern China since last year. The company has a 100% interest in the field and is its sole operator. The LD 5-2 field is now producing more than 2,200 barrels of crude oil a day from four wells. Its daily capacity is expected to peak about 9,600 barrels when all the 22 wells are put into operation. (Source: Earthtimes.org)