Sinopec discovers large-size oil and gas field in Myanmar

Beijing, February 16th, 2011 - SIPC Myanmar Petroleum Co. Ltd, a joint venture between Sinopec International Petroleum Exploration and Production Corp. and its Myanmar partner, discovered a large-size oil and gas field in the northwest of Myanmar, according to local newspaper reports reaching here on Wednesday.

As is reported, the new oil and gas field is about 835 kilometers northwest of Yangon, the biggest city in Burma, with a daily output of 2.1 million cubic meters of natural gas. The preliminary experimental drilling suggested that the field may have substantial reserve. It is learnt that six experimental test wells have been drilled and put into operation by the joint-venture company with three more under the company's plan.

This is the second petroleum gas reserve discovered by the subsidiary of Sinopec Group, the parent of Sinopec, within three months. Last month, the company discovered a petroleum gas mixture structure in the central Myanmar, with up to 909 billion cubic feet of natural gas and 7.16 million barrels of crude oil.

Myanmar has become an emerging big store of petroleum gas in recent years. Its proven oil and gas reserve has doubled during the past decade. According to data by BP Amoco, the country's natural gas reserve is about 570 billion cubic meters, almost as much as one fifth of that in Australia. - Xinhua News Agency

Oil falls below 86 dollars on Mubarak's resignation

China, February 12th, 2011 - Crude oil price fell on Friday below $86 a barrel as Egyptian President Hosni Mubarak 's resignation eased previous concerns about oil supply disruption in the Middle East.

Although Egypt is not a main oil producer, it controls the Suez Canal, which is an important oil transport route for the Middle East. Since the outbreak of political unrest in Egypt, the investors have been worrying about the normal operation of the Suez Canal.

Egyptian Vice President Omar Suleiman said Friday on television that Mubarak had resigned, handing over power to the army. This news was translated by the investors into an end to the several- week-long unrest in Egypt, as well as stable oil supply.

Meanwhile, Mubarak's resignation sent US stocks and the dollar higher, which also pressured oil price.

Light, sweet crude for March delivery dropped 1.15 dollars to 85.58 dollars a barrel on the New York Mercantile Exchange. - Xinhua