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China's National Development and Reform Commission has given the go-ahead to Cnooc Ltd. (>> CNOOC Limited), the country's primary offshore oil producer, and its Australian partners to begin commercial production at two offshore oil fields in the Beibu Gulf.

The NDRC, China's top economic planning body, said it approved Cnooc's overall development plan for the two fields in October, according to a statement posted Thursday on the commission's website.

The Beibu Gulf is located about 60 kilometers from the southern coast of China.

Cnooc, which holds a 51% stake in the project, is the sole operator of the two fields, known as Weizhou 12-8 and Weizhou 6-12. Australia's Roc Oil (>> Roc Oil Company Limited), which initially led exploration of the fields, is the second largest stakeholder, with a 19.6% interest.

Roc Oil discovered crude oil at Weizhou 12-8 in 2004 and at Weizhou 6-12 in 2006, according to the company's website.

In the second quarter of 2010, Cnooc exercised its right to take a majority stake in the project, which reduced Roc's share to 19.6% from 40%, Roc said. Three other Australian companies--Horizon Oil Ltd. (>> Horizon Oil Limited), Petsec Petroleum Inc. (>> Petsec Energy Ltd.) and Oil Australia Ltd.--own the remaining stake.

The two offshore fields combined have an estimated 24 million barrels of proven plus probable reserves of crude, Roc has said.