CNOOC Adds Massive Gas Reserves in South China Sea Discovery

China’s authorities have approved the proved gas in-place volumes of over 100 billion cubic meters in a new discovery in the western part of the South China Sea, which is the world’s first large ultra-shallow gas play in ultra-deepwater, state oil and gas giant CNOOC said on Wednesday.

The proved gas in place at the Lingshui 36-1 gas field, which stands at over 100 billion cubic meters, is now made official after the Chinese governmental authorities approved it, two months after the company announced the major exploration breakthrough in ultra-shallow gas play in ultra-deepwater South China Sea.

The Lingshui 36-1 gas field is located in the western South China Sea, with an average water depth of approximately 1,500 meters (4,921 ft). The main gas-bearing play is the Ledong Formation of Quaternary, with an average burial depth of 210 meters (689 ft). The field has been tested to produce over 10 million cubic meters per day of open-flow natural gas, CNOOC says.

“Ultra-shallow gas reservoirs are important sources of hydrocarbon in deep waters,” CNOOC’s Chief Geologist Xu Changgui said.

Zhou Xinhuai, CEO and President of the Chinese giant, commented,

“The newly discovered ultra-deep-water ultra-shallow gas field is an important composition of the trillion-cubic-meters gas region in the South China Sea.”

CNOOC and other Chinese state-owned energy giants are boosting domestic oil and gas exploration and production to keep up with government guidance for increased production to enhance China’s domestic energy supply and energy security.

At the end of last month, CNOOC launched crude oil production from a new development project in the South China Sea.

CNOOC announced the start of the Enping 21-4 Oilfield Development Project in the eastern South China Sea. The project is expected to reach peak production of about 5,300 barrels of oil equivalent per day (boepd) of light crude oil in 2025.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com

• Trump's Trade Policies Threaten to Disrupt Global Energy Markets
• After Campaigning on Free Natural Gas, Erdogan Hikes Prices by 38%

• Is the AI Boom Pushing Mid-Atlantic Power Infrastructure to the Brink?