CNOOC President Wei Liucheng, and Lu Yongxiang, president of the Chinese Academy of Sciences, signed a letter of intent for technical co-operation during the 10th Five-Year Plan period (2001-05) in Beijing.

The letter of intent said the two sides agreed to pool research forces to promote a series of new technology to increase to CNOOC's production.

Such co-operation will help reach CNOOC's goal of pumping 40 million tons of oil equivalent and slashing its production cost to less than US$10 per barrel by 2005, the letter said.

The two institutions also hope to raise some high-quality technical talents to promote CNOOC's future development.

Established in 1982, CNOOC is a State company specially in charge of developing offshore oil and gas resources. By the end of 1999, CNOOC had already found 2.75 billion tons of oil and 436.9 billion cubic metres of gas.

It produced 20.59 million tons of oil equivalent last year.

CNOOC now wants to double its oil and gas output over the next five years. To do so, the oil company must overcome a series of key technical problems to improve its recovery ratio and to launch multi-wave seismic exploration.

Wei said the CAS is the CNOOC's ideal technical research partner, given the fact that the leading academic institution has excellent personnel and research capabilities. CAS also has abundant data and results in the oil and gas exploration and development sector.

According to Lu Yongxiang, the Chinese Academy of Sciences is expanding its co-operation with industrial departments to promote basic, strategic and prospective innovation for economic and social progress. The academy has launched its all-round "knowledge innovation" strategy in early 1998.

(China Daily 05/26/2000)