Chinese state-owned oil and gas giant China National Offshore Oil Corporation (CNOOC) has kick-started production from the second phase of its oilfield development project in the Bohai Sea.
The Luda 5-2 North oilfield phase II development project has been brought on stream less than three years after production began from phase I in 2022 when the field became the first to produce from super heavy oil reservoirs through thermal recovery off the coast of China.
CNOOC, which holds 100% interest in this project and acts as its operator, made inroads it describes as “major technological breakthroughs” in the project by significantly enhancing the development efficiency of offshore super heavy oil.
According to the company, phase II will further tap into the resources of the oilfield, realizing efficient and economic development of heavy crude through optimized jet pump injection-production technology, which could further enhance the firm’s energy supply capacity.
Located in the central part of the Bohai Sea, with an average water depth of approximately 30 meters, the main production facilities include one new auxiliary production platform and one production wellhead platform.
The Chinese giant underlines that 29 development wells are on the agenda to be commissioned, including 28 production wells and 1 water source well. This project is expected to reach a peak production of around 6,700 barrels of oil equivalent per day in 2026.
The oilfield project’s second stage came online shortly after CNOOC switched the production mode on at the Bozhong 26-6 oilfield development project (Phase I), which is seen as “the world’s largest metamorphic buried hill oilfield,” containing cumulative proven oil and gas in place of over 200 million cubic meters.
The Chinese player has allocated up to $19 billion to augment its oil and gas production this year while also pursuing more offshore wind and onshore solar, alongside other lower-emission developments and artificial intelligence (AI) to bolster its hydrocarbon business.