December 20, 2010 [TradingMarkets] - China National Offshore Oil Corp., the parent of CNOOC Ltd., will build the strategic petroleum reserve (SPR) base in Huizhou, southeast Guangdong province, reported Dow Jones.
The media cited an unnamed source as saying that the SPR base would make use of underground caverns and had a capacity of five million cu bic meters.
The base, with investment of 3.8 billion yuan, will mainly take the crude oil imported from Omen, light crude oil from Saudi Arabia, heav y oil from Saudi Arabia and the crude oil from Angolan Dalia and Giras sol oilfields as feedstock, added the report.
The base is planned to complete construction within 40 months.
China is establishing strategic oil reserves to provide a cushion a gainst disruptions to supplies as it imports more crude to meet growin g domestic consumption and compenstate for falling output from its agi ng fields.
The first batch of SPR, including four bases, was built in 2009 and has been filled in crude oil. The second batch is under construction.
