Giant Chinese oil company initiates enormous offshore oil field development

In a significant move, CNOOC Limited, a leading oil and gas company listed on the SEHK (00883 HKD Counter and 80883 RMB Counter) and SSE (600938), has announced the commencement of the Wenchang 16-2 Oilfield Development Project. The project, located in the western Pearl River Mouth Basin, is expected to primarily utilize the adjacent existing facilities of the Wenchang Oilfields.

The Wenchang 16-2 Oilfield Development Project is a significant undertaking, with a total of 15 development wells planned. CNOOC Limited, as the operator of the project, will oversee the development, which includes the addition of a new jacket platform. This platform will integrate functions such as oil and gas production, offshore drilling and completion operations, and personnel accommodation.

The oil property associated with the Wenchang 16-2 Oilfield Development Project is light crude. The project, though specific timelines for the commissioning of the 15 development wells are not provided, is expected to achieve a plateau production of approximately 11,200 barrels of oil equivalent per day in 2027.

The Wenchang 16-2 Oilfield Development Project is being developed by CNOOC Limited, a company that holds a 100% interest in the project. The project is located in a region with an average water depth of approximately 150 meters.

It's important to note that the location of the Wenchang 16-2 Oilfield Development Project beyond being in the western Pearl River Mouth Basin is not specified. However, the development of the project mainly leverages the adjacent existing facilities of the Wenchang Oilfields, ensuring a strategic and efficient approach to oil extraction.

CNOOC Limited's commitment to the Wenchang 16-2 Oilfield Development Project underscores its continued investment in China's oil and gas sector. The company's focus on leveraging existing facilities and integrating advanced technology into its operations bodes well for the future of oil production in China.

As the Wenchang 16-2 Oilfield Development Project progresses, updates on its development and production will undoubtedly be of interest to investors and the wider energy industry. The project's potential to contribute significantly to China's oil production is a testament to CNOOC Limited's strategic vision and operational prowess.