Bohai Bay bonanza

China's thirst for oil has sparked its state-owned energy firms into a frenzy of activity in the past year or so. But there is also increasing scope for foreign players, especially in the offshore sector, with the Bohai Bay area emerging as a focal point for development, Martin Clark reports

IT IS NOT one of the world's exploration and production (E&P) hotspots, but with oil output at around 3.4m barrels a day (b/d), China is a proved hydrocarbons province. Much of the known oil and gas deposits are onshore, an area still largely off-limits to foreign investors, but there is growing attention to the offshore, especially with the gradual opening of the country's gas market. One of the notable trends in Chinese oil production in recent years is the contrast between the slow decline from mature onshore fields and the acceleration of offshore development. Offshore oil output now accounts for over 0.5m b/d of total production, up by more than 200% since 1995. China National Offsh