CNOOC kicks off production from Chinese gas field, sees output increase in 3Q
CNOOC Limited has started production from the Bozhong 19-6 condensate gas field pilot area development project located offshore China. The oil company saw an increase in its production driven by domestic output.
The CNOOC-operated Bozhong 19-6 condensate gas field pilot area development project is located in the central Bohai with an average water depth of approximately 23 meters.
According to CNOOC’s statement on Thursday, a new wellhead platform has been built and will fully utilize the existing processing facilities of Bozhong 13-1 oilfield.
Eight development wells are planned for production, including seven production wells and one water source well.
The project is expected to reach its peak production of approximately 35.32 million cubic feet of natural gas and 5,720 barrels of condensate oil per day by the end of 2020.
CNOOC Limited holds a 100 per cent working interest in Bozhong 19-6 condensate gas field pilot area development project and acts as the operator.
Wang Dongjin, the Chairman of the Company said, “Commencement of production in Bozhong 19-6 condensate gas field pilot area development project has laid a solid foundation for the overall development later on and will provide low-carbon and safe energy for Bohai Rim Region.
“Focusing on large and medium-sized oil and gas fields, the company will continue to innovate exploration and development ideas, enhance efforts in oil and gas exploration and development, obtain more new oil and gas discoveries, and ensure high-quality and sustainable development”.
Production increase in 3Q 2020
Also on Thursday, CNOOC said it had achieved a total net production of 131.2 million barrels of oil equivalent (BOE) for the third quarter of 2020, representing an increase of 5.1 per cent year-over-year (YoY).
Production from China increased by 10.4 per cent YoY to 88.6 million BOE, mainly attributable to the commencement of new projects such as Luda 21-2/ Luda 16-3 regional development project and Dongfang 13-2 gas fields development project.
Production from overseas decreased by 4.6 per cent YoY to 42.6 million BOE, mainly due to the reduced production of the Egina project in Nigeria and Long Lake oil sands project in Canada under low oil prices.
Four new projects started production in this quarter, namely, Nanbao 35-2 oil field S1 area, Jinzhou 25-1 oil field 6/11 area, Liuhua 16-2 oil field / Liuhua 20-2 oil field joint development project and Bozhong 19-6 condensate gas field pilot area.
The unaudited oil and gas sales revenue of the company reached approximately RMB 35.55 billion ($5.3 billion) during the period, down 26.8 per cent YoY, mainly due to the combined effect of lower realised oil price, higher oil and gas sales volume and exchange rate fluctuations.
The capital expenditure for the third quarter of 2020 decreased by 5.8 per cent YoY to approximately RMB 18.4 billion ($2.8 billion).