CNOOC Starts Production from Deepwater Gas Project in South China Sea

© JT Jeeraphun / Adobe Stock
© JT Jeeraphun / Adobe Stock

China's state-owned oil and gas firm China National Offshore Oil Corporation (CNOOC) has started production at phase-2 development at its Shenhai-1 deepwater gas project in northern South China Sea.

The project is located in the Qiongdongnan Basin, with an average water depth of approximately 900 meters.

The main production facilities include a new fixed production platform and three centralized subsea wellheads, with 12 development wells planned to be commissioned.

It is expected to reach peak production of 162 million cubic feet of natural gas and 3,931 barrels of condensate per day in 2025, according to CNOOC.

"The project has successfully overcome the world-class challenge of deep-water high-pressure oil and gas reservoir development. It witnesses effective large-scale conversion of reserves into production from the 'South China Sea trillion-cubic-meters-level gas region', and provides stable supply of clean energy for the economic and social development of South China.

“In the future, CNOOC Limited will accelerate the development of new quality productivity of marine energy, and strengthen the exploration and development of deep-water oil and gas resources, thereby further contributing to the high-quality development of China’s offshore oil industry,” said Wang Dongjin, Chairman of CNOOC.

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