Chinese Giant Launches New Oil Development Project in the South China Sea

Chinese state-owned oil and gas giant China National Offshore Oil Corporation (CNOOC) has started production from an oilfield development project in the South China Sea ahead of schedule.

CNOOC, which operates and holds 100% interest in the Xijiang 30-2 oilfield Xijiang 30-1 Block development project, has confirmed the production start-up, which was achieved earlier than expected.

Located in the eastern South China Sea, within an average water depth of about 98 meters, the main production facilities encompass a new drilling production platform.

With 23 development wells planned to be commissioned, this project is anticipated to reach a peak production of approximately 26,000 barrels of oil equivalent per day in 2027. The oil property is said to be medium crude.

CNOOC has had a busy year, with multiple oil and gas projects coming online and several discoveries being made in line with its business strategy and development plan for 2024. At the start of October 2024, the firm brought an oilfield development project in Bohai Bay on stream.

Two weeks earlier, the Chinese giant also started production from a natural gas project in the South China Sea, where the total proved gas in place reserves exceeded 1 trillion cubic meters, which followed the commencement of oil production at a project equipped with a platform and FPSO unit as part of the revitalization efforts undertaken at old deepwater oil fields to ensure the country’s energy security.

The most recent hydrocarbon discovery was a natural gas one, which is said to mark the first major exploration breakthrough in ultra-deepwater carbonate rocks off the coast of China, which came on the heels of the one the firm confirmed in ultra-shallow gas play in the ultra-deepwater of the South China Sea.