Photo: Illustration. Source: CNOOC Limited

Chinese giant brings on stream two projects in Bohai Sea

Chinese oil and gas player CNOOC Limited has kicked off production from two oilfield development projects located in the Bohai Sea off China.

CNOOC revealed last Friday that the Luda 5-2 oilfield north phase I and Kenli 6-1 oilfield 4-1 block development projects had started production. CNOOC Limited acts as the operator and holds 100 per cent interest in both projects.

Located in Liaodong Bay of Bohai Sea, the Luda 5-2 oilfield north phase I project is situated within an average water depth of about 32 meters. The project has built one thermal recovery wellhead platform and one production adjective platform aside from fully utilizing the existing processing facilities of Suizhong 36-1 oilfield.

According to CNOOC, a total of 28 development wells – including 26 production wells and 2 water source wells – are planned at the Luda 5-2 project. The Chinese giant also informed that the project is expected to reach its peak production of approximately 8,200 barrels of crude oil per day in 2024.

On the other hand, the Kenli 6-1 oilfield 4-1 block development project is located in the south of the Bohai Sea, with an average water depth of about 17 meters. The production facility is a wellhead platform in addition to fully utilizing the existing processing facilities of Bozhong 34-9 oilfield.

CNOOC reported that a total of 12 development wells are planned at Kenli 6-1 project, including 7 production wells and 5 water injection wells. The oil and gas player also confirmed that this oilfield is expected to reach its peak production of approximately 4,000 barrels of crude oil per day in 2022.

These developments are in line with the company’s 2022 Business Strategy and Development Plan – revealed in early 2022 – regarding plans to increase oil and gas production in the next three years while promoting green energy transition initiatives.

Just one day prior to announcing the start-up of these two projects, CNOOC also announced the launch of an initial public offering (IPO) on Shanghai Stock Exchange, raising about $4.4 billion in a bid to take full advantage of domestic and overseas financing channels. The move came following the delisting by the New York Stock Exchange in October.

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CNOOC expressed high hopes during the IPO announcement, expecting the opening of a new chapter, which would enable it to set sail on a promising voyage towards high-quality development in the A-share market in the future.