Currently, gas output from Chunxiao, which is the subject of a sovereignty dispute with Japan, has fallen to 440,000 cubic metres per day from six wells, declining from its peak of 520,000 cmd in May last year.
CNOOC and Sinopec, each with a 50% stake in the development, attributed the drop to "geological problems", industry sources said.
To make matters worse, the Chinese government has rejected a plan presented by field operator CNOOC and Sinopec for further development of Chunxiao, which consists of four fields Tianwaitian, Canxue, Duanqiao and Chunxiao.
