CNOOC Begins Oil Production at South China Sea Field

China’s state-held oil and gas giant CNOOC said on Thursday that it had launched crude oil production from a new development project in the South China Sea.

CNOOC, which specializes in offshore exploration and production in China and abroad, announced the start of the Enping 21-4 Oilfield Development Project in the eastern South China Sea, at an average water depth of about 89 meters (292 ft).

The Enping 21-4 project is expected to reach peak production of approximately 5,300 barrels of oil equivalent per day (boepd) of light crude oil in 2025.

Enping 21-4 oilfield was developed with two extra extended reach wells drilled from the existing production platform. The well depth exceeds 9,500 meters (31,168 ft), the company said.   

CNOOC boosted its 2023 oil and gas production to a record-high of 678 million barrels of oil equivalent (boe), above the 650 million boe guidance, the Chinese company said in March.

Net proved reserves were also at their all-time high for the company at the end of 2023, at around 6.78 billion boe. In 2023, the reserve replacement ratio reached 180% and the reserve life remained above 10 years for seven consecutive years, CNOOC said. 

Since the beginning of this year, CNOOC has announced two major oil discoveries offshore China.

CNOOC also hiked in January its oil and gas production targets and capital expenditures to record-high levels as it looks to boost reserves and production.

CNOOC now aims at an output of between 700 million and 720 million barrels of oil equivalent this year as it significantly raised its production targets in the 2024 business strategy and development plan.

The net production target for 2025 was set at 780 million to 800 million boe, and output in 2026 is planned to further rise to between 810 million and 830 million boe.

By Tsvetana Paraskova for Oilprice.com

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