New ‘major’ oil discovery comes to light offshore China

China’s oil and gas giant CNOOC Limited has made a significant oil discovery in the northcentral waters of the Bohai Sea, with an average water depth of approximately 25 meters, off the coast of China.

The QHD27-3-3 well was drilled and completed at a depth of 1,570 meters, encountering 48.9 meters of oil pay zones. The discovery of the Qinhuangdao 27-3 oilfield adds over a hundred million tons of oil equivalent proved in-place volume. While the field’s main oil-bearing play is the Minghuazhen Formation of Neogene, the oil property is medium-heavy crude.

Xu Changgui, CNOOC’s Deputy Chief Exploration Officer, commented: “Qinhuangdao 27-3 oilfield is another major discovery with proved-in place volume over 100 million tons that we made in the north-central Bohai Sea in a decade. The successful discovery of the oilfield further demonstrates the oil and gas exploration potential in the complicated strike-slip fault zones of the Bohai Sea.”

Furthermore, the Qinhuangdao 27-3 field has been tested to produce around 742 barrels of crude oil per day from a single well. According to CNOOC, the proved in-place volume of the oilfield has reached 104 million tons of oil equivalent through continued exploration.

Zhou Xinhuai, CNOOC’s CEO and President, highlighted: “Over the years, we have been continuing to make new discoveries in the Bohai Sea, which further expand the resource base for offshore oil production growth. CNOOC Limited will focus on increasing reserves and production, to enhance our energy supply capacity, thereby contributing to the sustainable development of the economy and society.”

This oilfield discovery comes on the heels of the one the firm disclosed a few days ago in the eastern South China Sea, which also brought over a hundred million tons of oil equivalent proved in-place volume.

CNOOC’s business strategy and development plan for 2024 spotlights plans to step up oil and gas production, strengthen hydrocarbon reserves, and scale up natural gas exploration activities. The company also intends to boost its energy transition journey to low-carbon and renewable energy.