First oil flows from Chinese major’s Bohai Sea shallow water asset

July 22, 2025, by Dragana Nikše

CNOOC Limited, a subsidiary of Chinese state-owned oil and gas giant China National Offshore Oil Corporation (CNOOC), has started production at a shallow oilfield located in the southern Bohai Sea.

Kenli 10-2 oilfields development project Phase I; Source: CNOOC Limited

The project in question, Kenli 10-2 Oilfields development project Phase I, is described by the Chinese player as the largest shallow lithological oilfield offshore China. The project is 100%-owned and operated by CNOOC Limited.

Located in the southern Bohai Sea at an average water depth of 20 meters, the Kenli 10-2 Oilfield is said to have a proved in-place volume of 100 million tons of heavy crude. It will be developed in two phases.

The main production facilities include a new central platform and two wellhead platforms, leveraging the existing facilities nearby for development. As stated by the Chinese major, the project’s platform integrates conventional cold production and thermal recovery systems.

CNOOC Limited President, Yan Hongtao, said: “The successful commencement of production of this project marks a new stage in the development of complicated heavy oil reservoirs offshore China. It will strongly support the Company’s Bohai Oilfield to achieve the annual gross production target of 40 million tons, contributing to the Company’s high-quality development through high-level operations.”

The project is expected to achieve a peak production of approximately 19,400 barrels of oil equivalent per day in 2026. For this to happen, 79 development wells are planned to be brought online, including 33 cold recovery wells, 24 thermal recovery wells, 21 water injection wells, and one water source well.

This follows a rece n t discovery in the South China Sea, described as a “major breakthrough” by the Chinese firm, when the WZ10-5S-2d exploration well hit an oil and gas pay zone of 211 meters.