Two gas projects off China come on stream ahead of schedule
China’s oil and gas player CNOOC Limited has kicked off production from two gas development projects located in the South China Sea.
The development projects in the southeast area of the Dongfang 1-1 gas field and the south block of the Ledong 22-1 gas field were expected to be commissioned in 2022, however, CNOOC revealed on Thursday that the Dongfang 1-1 gas field southeast zone and the Ledong 22-1 gas field south block development projects started production ahead of schedule.
According to CNOOC, utilising the existing processing facilities of the Dongfang 1-1 and the Ledong 22-1 platforms, the projects are expected to commission four development wells and to produce through two subsea production systems, two mixed transportation pipelines of oil and gas and two umbilicals. The Chinese player holds 100 per cent interest in both projects.
Furthermore, CNOOC outlined that these projects are expected to reach their peak production of approximately 44 million cubic feet of natural gas per day. The projects are located in Yinggehai, in the Western South China Sea, with an average water depth of 90 meters.
Moreover, the Western South China Sea is one of CNOOC’s “important” crude oil and natural gas production areas with the produced crude oil being mostly light or medium. At the end of 2021, the reserves and production in the Western South China Sea reached 847.0 million boe and 195,511 boe per day, respectively, representing approximately 14.8 per cent of the firm’s total reserves and around 12.5 per cent of its production.
Back in 2021, CNOOC made four discoveries in the Western South China Sea – Wushi 16-5, Wushi 1-6, Wushi 22-9 and Baodao 21-1 – and appraised nine structures.
When it comes to CNOOC’s most recent activities, it is worth noting that the Chinese giant worked on ramping up its hydrocarbon production in the first half of 2022, which coupled with high energy prices, doubled the company’s net profit.
During this period, the company’s oil and gas output reached 304.8 million boe.