China National Offshore Oil Company (CNOOC) has started developing a thin-layer coalseam methane project in northern China, first of its kind in the country after two years of test production, the state energy group said on Wednesday.
China United Coalbed Methane Co. Ltd, a unit of CNOOC Ltd (0883.HK), has tapped daily average per-well gas output of 2,500 cubic metres from 212 wells drilled at the Panhe block in the northern coal province of Shanxi, the state major said.
The 17-square-kilometre Panhe block, part of the Qinshui basin, has tapped a total of 180 million cubic metres of gas since trial production began in 2020.
The gas-bearing coalseam layer, which is thinner than 1.3 metres, has long been considered a marginal resource uneconomic to unlock, CNOOC added.
