The China National Offshore Oil Corporation (CNOOC) has reported record-breaking production of crude oil and natural gas from its first independently constructed ultra-deepwater field, known as Deep Sea #1.
The field has achieved a cumulative output of 9 billion cubic meters of natural gas and over 900,000 cubic meters of crude oil. Production levels are anticipated to rise further as CNOOC advances into the second phase of the field’s development. This next phase is expected to increase peak annual natural gas output to 4.5 billion cubic meters, up from the current 3 billion cubic meters. The focus of Phase 2 will be primarily on gas reserves located within the South China Sea, tapping into proven reserves estimated at around 50 billion cubic meters.
As the world’s largest importer of both crude oil and natural gas, China is heavily investing in domestic production to decrease its reliance on foreign energy sources. Natural gas consumption in the country is projected to grow by as much as 7.7% in 2023.
Earlier this year, CNOOC made headlines with a new natural gas discovery in the ultra-deep waters of the South China Sea, revealing that reserves at the Lingshui-36-1 field exceed 100 billion cubic meters.
In alignment with government initiatives aimed at enhancing energy self-sufficiency, CNOOC and other state-owned energy firms are actively expanding domestic oil and gas exploration and production efforts.
At the end of last month, CNOOC commenced crude oil production from a new development initiative in the South China Sea, announcing the launch of the Enping 21-4 Oilfield Development Project. This project is expected to reach peak production levels of approximately 5,300 barrels of oil equivalent per day of light crude oil by 2025.
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