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PetroChina, Shell Start Gas Output at Well in Northern China

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PetroChina, Shell Start Gas Output at Well in Northern China 

By Winnie Zhu

July 11 (Bloomberg) — PetroChina Co., the nation’s biggest oil company, andRoyal Dutch Shell Plc started production at a well in Changbei gas field in the northwestern province of Shaanxi, according to parent China National Petroleum Corp.

The CB4-1 well will produce between 1.4 million and 1.5 million cubic meters a day, China National said in its online newsletter China Oil News today.

PetroChina and Shell signed a contract to extract gas in Changbei more than three years ago, describing the venture then as the largest onshore exploration and production project by a Chinese company and a foreign partner. Commercial production and gas delivery commenced last March.

The well’s daily output peaked at 2.25 million cubic meters during test runs, China National said. CB4-1 will be the seventh well with a capacity exceeding 1 million cubic meters a day.

Changbei, in the Ordos Basin straddling the northern provinces of Shaanxi and Inner Mongolia, supplies gas to Beijing and the port city of Tianjin, as well as Shandong and Hebei provinces. Annual production is projected to reach 3 billion cubic meters in 2008.

To contact the reporter on this story: Winnie Zhu in Shanghai at[email protected]

Last Updated: July 11, 2008 01:37 EDT

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