CNOOC Announces Offshore Oil and Gas Exploration Breakthrough

Chinese state-held oil and gas giant CNOOC said on Monday it had achieved an exploration breakthrough in medium-to-deep Mesozoic plays in the Bohai Bay offshore China.

CNOOC, which specializes in offshore exploration and production in China and abroad, was exploring a discovery well in the Longkou 7-1 oilfield in eastern Bohai Bay. The well was drilled and completed at a depth of approximately 4,400 meters (14,436 ft), encountering a total of 76 meters (249 ft) of oil and gas pay zones.

The well was tested to produce about 210 cubic meters of crude oil and nearly one million cubic meters of natural gas, a new record for gas tested productivity in Bohai Bay, according to the Chinese firm.

The successful well shows CNOOC’s “understanding and technological capabilities in tapping resources in medium-to-deep plays. The expertise we gained will guide our exploration in similar plays offshore China,” Xu Changgui, CNOOC’s deputy chief exploration officer, said in a statement.

CNOOC and other Chinese state-owned energy giants are boosting domestic oil and gas exploration and production to keep up with government guidance for increased production to enhance China’s domestic energy supply and energy security.

At the end of last month, CNOOC launched crude oil production from a new development project in the South China Sea.

CNOOC announced the start of the Enping 21-4 Oilfield Development Project in the eastern South China Sea. The project is expected to reach peak production of about 5,300 barrels of oil equivalent per day (boepd) of light crude oil in 2025.

The company boosted its 2023 oil and gas production to a record-high of 678 million barrels of oil equivalent (boe), above the 650 million boe guidance, it said in March.

CNOOC hiked in January its oil and gas production targets and capital expenditures to record-high levels as it looks to boost reserves and production.

Since the beginning of this year, CNOOC has announced two major oil discoveries offshore China.

By Josh Owens for Oilprice.com