The main production facility is a new drilling and production platform, which leverages the adjacent existing facilities for development. CNOOC added that 25 development wells are planned to be commissioned, including 18 production wells and seven gas injection wells.
Cnooc’s focus on extraction leaves its earnings heavily dependent on global oil prices, which averaged about 3% less in 2024 on-year. But it also means the company is relatively unaffected by headwinds to demand faced by downstream peers. Earlier this week, China’s biggest top, Sinopec, reported a tumble in profits as the electric-vehicle boom weighs on fuel consumption.
CNOOC Ltd. has achieved first oil in the second-phase development of the Luda 5-2 North field in the Bohai Sea, the fourth project it announced to have been started up in China this year.
The project is located in central Bohai Bay, with an average water depth of approximately 20 meters. The main production facilities include a new central processing platform and an unmanned wellhead platform.
Producing light crude, the development is expected to reach 22,300 barrels of oil equivalent a day in peak production this year. Bozhong 26-6, which has an average water depth of about 20 meters (65.62 feet), holds over 200 million cubic meters (7.06 billion cubic feet) of proven oil and gas in place, according to the state-backed company.
Chinese state-held oil and gas giant CNOOC is keeping its capital expenditure flat this year compared to 2024 as it lowered its oil and gas production growth target, although it still expects annual output records going forward.
The oil and gas explorer and producer added, “In recent years, CNOOC Limited has been continually tapping the resource potentials of the Yinggehai-Qiongdongnan Basin, to fully utilize the existing production facilities and thereby reduce the development cost of new projects”.
A Shell-CNOOC joint venture has reached an FID on expanding a petrochemicals complex in the south of China, Shell said on Wednesday.
The state-backed oil and gas exploration and production company expects the project to reach about 17,000 barrels of oil equivalent a day (boed) in peak production in 2027. The oil portion is heavy crude, according to a statement on CNOOC Ltd.’s website.
The project is located in the Pearl River Mouth Basin, with an average water depth of approximately 110 meters. The main production facilities include a new intelligent drilling production platform, as well as the adaptively modified “NAN HAI FEN JIN” FPSO. A total of 19 development wells are planned to be commissioned, including 2 oil production wells and 17 gas production wells. The project is expected to achieve a peak production of approximately 20,600 boed in 2027. The main products include light crude and natural gas.