Chinese Oil Company CNOOC Makes 1st Ultra-Deepwater Gas Discovery In South China Sea

Oil and gas platform — Image for representation purposes only

CNOOC, China’s state-owned energy company, announced the discovery of the first ultra-deepwater gas in the South China Sea. The well, drilled in the Baiyun Sag of the Pearl River Mouth Basin, has an open flow potential of 430,000 cubic meters per day.

The well, located about 150 nautical miles south of Shenzhen in China’s uncontested exclusive economic zone, revealed a gas pay zone of around 650 meters at a total depth of about 4,400 meters.

The discovery was made in Baiyun Sag, a location known for its rich hydrocarbon resources. The well was drilled at about 3,000 meters vertical depth.

Previously, efforts were focused on clastic rock formations, but this discovery shows the potential of carbonate rocks, which could change exploration techniques and increase the success rate of future explorations.

Xu Changgui, CNOOC’s chief geologist, stated that the discovery of this well has opened up new opportunities for carbonate rock exploration in China’s ultra-deepwater regions.

The discovery is positioned close to existing production facilities, including the Liwan 3-1 gas field, which opens up the possibility of a tieback arrangement to develop the new well economically.

This is CNOOC’s second gas discovery in recent months. In June, the company announced a major discovery at the Lingshui 36-1 reservoir, an ultra-shallow field in ultra-deepwater that is believed to be the first in the world.

The Lingshui field, located just 200 meters below the seabed in 1,500 meters of water, was discovered to contain more than 100 billion cubic meters (3.5 trillion cubic feet) of natural gas and has a production capability of up to 10 million cubic meters per day.

The announcement coincides with a time when CNOOC is experiencing a leadership change. Li Yong, the former general manager, retired in December 2023. Three months later, the Central Commission for Discipline Inspection started investigating his tenure.

The commission recently announced that Li had been expelled from the Chinese Communist Party due to claims of misconduct such as collecting bribes, abusing power for personal gain, and maintaining connections with illegal businessmen. Li has worked for state-owned oil companies since 1984 and was head of CNOOC for three years.

Reference: CNOOC

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