CNOOC Finds Shale Oil in South China Sea Exploration Well

© Eagle / Adobe Stock
© Eagle / Adobe Stock

China's CNOOC Ltd has tapped commercial flows of oil and gas from a shale exploration well in the South China Sea, marking the first successfully drilled shale oil well offshore China, state media reported on Thursday.

Exploration well Weiye-1, sunk at the southwestern trough of Beibuwan basin in South China Sea, tested daily production of 20 cubic meters (126 barrels) of oil and 1,589 cubic meters of natural gas, Shanghai Securities Journal reported.

The whole Beibuwan basin could hold about 1.2 billion tonnes of prospective shale oil resource, the report added.

CNOOC Ltd's press department did not immediately respond to a request for comment.

Under a central government call to boost domestic energy supply security, national oil companies are making greater efforts to tap shale deposits despite their geological challenges and higher cost.

By late 2021 China produced only 35,000 barrels per day (bpd) of shale oil - extracted from shale rocks and is more complex and expensive to produce than conventional crude - mostly in onshore northern Ordos basin and northwestern Jungar basin.

That equates to less than 1% of its total oil output.


(Reuters - Reporting by Chen Aizhu)

Current News

Three Questions: Matt Tremblay, VP, Global Offshore Markets, ABS

Three Questions: Matt Tremblay

The APAC Offshore Market: Riding the Wave of Success into 2024 and Beyond

The APAC Offshore Market: Ridi

Boskalis Commissions BOKA Ocean Cable-Laying Vessel

Boskalis Commissions BOKA Ocea

QatarEnergy Pays Homage to Rex Tillerson by Giving His Name to New LNG Carrier

QatarEnergy Pays Homage to Rex

Subscribe for OE Digital E‑News

Offshore Engineer Magazine