OREANDA-NEWS. June 29, 2011. China National Petroleum Corp (CNPC) has started drilling an exploration well at the Sulige South gas field, a joint venture project between CNPC and France's Total SA , the Chinese oil major said.

The Sulige South gas project, in northern Inner Mongolia, was expected to start operations in 2012, CNPC said on its website (www.cnpc.com.cn).

About 450 wells would be drilled before production of the field could reach 3 billion cubic metres per year, it added.

Total E&P Chine, a unit of Total, last month submitted an environmental influence report for its 29.8 billion yuan (USD 4.6 billion) Sulige South gas project to the Chinese government for approval.

Total and CNPC, the parent of PetroChina Co Ltd , signed a 30-year production-sharing contract in 2006 for the evaluation, development and production of the Sulige South gas block that covers 2,390 square kilometres.

CNPC has a 51 percent of stake in the project and will be the operator, while Total holds the remaining 49 percent and will provide technology and management.