Production has begun at a gas field under the management of the China National Offshore Oil Company Limited (CNOOC Ltd) in the South China Sea, the company announced Thursday.

The PanYu (PY) 30-1 field was yielding about 30 million cubic feet of natural gas per day, said a statement on the company website.

The daily gas production of PY30-1 would gradually increase to 93 million cubic feet this year, said the statement. Peak production is expected to reach 160 million cubic feet per day.

PY30-1 is located in the Pearl River basin in the eastern South China Sea, about 240 kilometers southeast of Hong Kong. The average water depth is around 200 meters.

The development facilities include one integrated platform and three sub-sea pipelines. Gas will be piped to an onshore processing terminal in Zhuhai, Guangdong province.

CNOOC Ltd has complete rights over the gas field and its products.

Incorporated in Hong Kong, CNOOC Ltd is a listed subsidiary of China National Offshore Oil Corporation, China's largest offshore oil producer.

(Xinhua News Agency March 20, 2009)