China’s oil and gas giant CNOOC Limited has made a new oil and gas discovery in the South China Sea, which is said to be a major one.
According to the Chinese player, the Kaiping South oilfield discovery adds over a hundred million tons of oil equivalent proved in-place volume. This oilfield is located in the eastern South China Sea, with an average water depth of approximately 500 meters.
Xu Changgui , Deputy Chief Exploration Officer of CNOOC, commented: “Kaiping South oilfield is China’s first deep-water and deep-play oilfield with proved in-place volume over a hundred million tons. The discovery fully demonstrates the broad prospects for exploration in deep-water South China Sea and further expands the resource base for the company’s high-quality development.”
CNOOC explains that the main oil-bearing plays are the Zhuhai Formation, Enping Formation, and Wenchang Formation of the Paleogene while the oil property is light crude. The KP18-1-1d well, drilled and completed at a depth of 3,462 meters, has encountered a total of 100.6 meters of oil and gas pay zones .
Furthermore, the well was tested to produce an average of around 7,680 barrels of crude oil and 0.52 million cubic feet of natural gas per day. The company confirms that the proved in-place volume of Kaiping South oilfield has reached 102 million tons of oil equivalent.
Zhou Xinhuai , CEO and President of CNOOC, stated: “In recent years, CNOOC Limited has achieved remarkable breakthroughs in oil and gas exploration in the eastern South China Sea, building a new growth pole for offshore oil and gas production. The company remains committed to oil and gas resources exploration and development in the South China Sea, thereby continuously enhancing its energy supply capacity.”
In line with this, CNOOC’s business strategy and development plan for 2024 shows the firm’s plans to ramp up oil and gas production, fortify hydrocarbon reserves, and step up natural gas exploration activities while advancing the company’s energy transition agenda to low-carbon and renewable energy through the integrated development of green sources, such as offshore wind, and oil and gas business.
The Chinese player has brought online new projects since the start of 2023, including an oilfields Phase II development project in the South China Sea and an oilfield secondary adjustment and development project in Liaodong Bay of Bohai Sea.