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Chinese state-controlled oil and gas giant CNOOC has started production from the first development phase of its Bozhong 19-6 offshore condensate gas field, the company said on Tuesday.
The field in the central Bohai Sea offshore eastern China has an average water depth of around 20 meters (66 ft).
The main production facilities include one newly-built central processing platform, three unmanned wellhead platforms, and one gas process terminal, said the company, which plans a total of 65 development wells, including 42 production wells, 20 gas injection wells, and three water source wells.
Phase one of the Bozhong 19-6 field is expected to reach peak production of around 37,000 barrels of oil equivalent per day (boepd) next year.
“The project is the first condensate gas field with a proved in-place volume of over 200 billion cubic meters natural gas that has been put into operation in Bohai Bay, relying on the Bozhong-Kenli Oilfields Onshore Power Project,” said CNOOC president and CEO Zhou Xinhuai.
The gas field is planned to supply stable clean energy to the Beijing-Tianjin-Hebei region and the Bohai Rim region, the executive added.
CNOOC and other Chinese state-held energy majors have stepped up exploration and production efforts in recent years as China looks to boost its domestic oil and natural gas production.
Last month, CNOOC raised its capital expenditure budget for this year to a record high to support growth in its reserves and production.
Also last month, the company announced the discovery of what Chinese media are referring to as a large, deep-reservoir coalbed methane field with proven geological reserves of over 100 billion cubic meters (bcm) of natural gas. A discovery of this magnitude represents CNOOC’s second major onshore gas discovery, which is being heralded as a major step toward expanding China’s unconventional production.
CNOOC and Sinopec have announced other large offshore and onshore discoveries in China in recent months.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.