CNOOC parent, Sinopec parent to jointly explore gas reserves in East China Sea

HONG KONG (AFX-ASIA) - CNOOC Ltd chairman Wei Liucheng said the company's parent China National Offshore Oil Corp and China Petroleum & Chemical Corp's (Sinopec) parent Sinopec Group Co will jointly develop gas reserves in the East China Sea.	    "The central government has approved the co-development project. Under the cooperation, CNOOC and Sinopec will be in charge of the exploration work," Wei said.	    Wei said the two groups will share the project equally.	    However, Wei declined to disclose the size of gas reserves in the well and the amount of the total investment.	    While CNOOC and Sinopec are going to work together for the gas well, Wei said he does not think "it is a good idea" to merge the two companies as the market has speculated.	    "CNOOC is in the upstream sector of the petrochemical industry, but Sinopec has expertise mainly in the downstream area. Both are constructed differently," Wei said.	    When asked whether Sinopec will become a threat to CNOOC since it has been awarded an offshore operating license, Wei said any impact from Sinopec in the near future is "impossible."	    "CNOOC has 20 years of offshore oil exploration experience, working with about 70 foreign companies. We have our advantage," Wei said. 

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