CNOOC Makes Another Major Oil Discovery Offshore China

CNOOC Limited has made a major oilfield discovery in the Bohai Sea offshore China, with more than 100 million tons of oil equivalent of in-place volume proved, the Chinese state-held oil and gas giant said on Monday, days after announcing a sizeable discovery in the South China Sea.   

The Bohai Sea discovery, dubbed Qinhuangdao 27-3 Oilfield, is located in the north-central waters of the Bohai Sea, at an average water depth of approximately 25 meters (82 ft). The oil is medium to heavy, according to the Chinese oil giant. The field has been tested to produce approximately 742 barrels of crude oil per day from a single well.   

“Over the years, we have been continuing to make new discoveries in the Bohai Sea, which further expand the resource base for offshore oil production growth,” said CNOOC’s chief executive and president Zhou Xinhuai.

Earlier this month, CNOOC announced a sizeable discovery offshore that could contain as much as 100 million tons of oil equivalent. The discovery was made in the South China Sea, in an already producing area of the Pearl River Delta, with light crude resources in place, the company said.

The latest discoveries come weeks after 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.

CNOOC, whose net oil and gas production hit an all-time high of 675 million barrels of oil equivalent (boe) in 2023, now aims at an output of between 700 million and 720 million barrels of oil equivalent this year as it significantly raised its production targets in the 2024 business strategy and development plan.

The net production target for 2025 was set at 780 million to 800 million boe, and output in 2026 is planned to further rise to between 810 million to 830 million boe.

By Charles Kennedy for Oilprice.com

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