BEIJING, June 14 (Xinhua) -- China National Offshore Oil Company Limited (CNOOC Ltd.) announced Wednesday that phase one of its gas project in Southeast Sumatra has been brought on stream.

The contractual gas delivery rate of phase one is 55 million cubic feet (about 1.56 million cubic meters) per day via four wells, said CNOOC Ltd.

The gas project is located about 120 kilometers offshore of West Java in Indonesia, with an average water depth of 30 meters.

The development facilities in phase one include one processing platform, three underwater pipelines and one underwater cable.

The natural gas produced will mainly be supplied to power plants owned by PT Perusahaan Listrik Negara (PLN), the state electricity company of Indonesia.

Phase two is expected to start gas delivery in early 2007, said CNOOC Ltd.

Liu Jian, executive vice president of CNOOC Ltd., said the successful commencement of the gas project indicates that CNOOC Ltd. is able to accomplish development of overseas oil and gas fields in a safe and effective manner.

CNOOC Ltd. holds 65.5 percent interest of the production sharing contracts in Southeast Sumatra and acts as the operator.

Incorporated in Hong Kong in August 1999, CNOOC Ltd. is a 70.64 percent held subsidiary of China National Offshore Oil Corporation (CNOOC), China's largest offshore oil and gas producer. Enditem