China National Offshore Oil and Gas Development in South China Sea

China's largest offshore CNOOC has revealed that CNOOC will spend 16 billion yuan a year on capital expenditure from 2020 to 2025.

Sept 24, the relevant person in charge of the company revealed the above news at the Nanshan terminal's economic observation network and other media interviews. The person said, "in the next five years, the company will further intensify its oil and gas exploration and development, with an average annual drilling rate of 50, with an annual average replacement rate of 130%, and actively promote the evaluation and construction of new projects. It is expected that a total of 14 new projects will be put into operation."

The above-mentioned persons in charge said that the specific target of the work was to produce 60-80 million barrels of oil equivalent by 2025, which would be achieved mainly through the measures of "deep excavation in production, tackling key new fields, revitalizing difficult-to-use and mainly attacking atmospheric areas".

Zhanjiang branch is located in Zhanjiang city of Guangdong province. It is one of the subsidiaries of Cnooc Limited of China National Offshore Oil Group Limited. It is responsible for the exploration, development and production of oil and natural gas in the western part of the South China Sea, which is responsible for the production of oil and gas 10 million Party equivalent. By the end of 2018, it has accumulated 2 million tons of crude oil and natural gas. Oil equivalent is one of China's most important marine energy bases.

Lingshui 17-2 gas field is located in the northern part of the Qiongdongnan Basin. It is about 150km from Sanya, Hainan province. It is about 160km from the 13-1 gas field in the western part of the qiongcheng gas field. It is about 87km from the gas pipeline of the 13-1 gas field in Ya Cheng. The water depth of the sea area in which the gas field is located ranges from 1220 m to 1560 M.

At present, semi-submersible platform has been constructed, and drilling and completion began in the second half of 2019. It is scheduled to go into operation in 2021.

By the end of August, the project had progressed well: the overall actual cumulative progress of the project was 22.47%; the actual cumulative progress of detailed design was 93.04%; the actual cumulative progress of OFE acquisition was 95.48%; and the actual cumulative progress of Land Construction Bank was 14.8%.

According to the introduction, in the future, CNOOC Zhanjiang branch will build 7 major oil field development systems such as Wushi, Hai Zhong, Redon and so on, and achieve stable annual production capacity of 450-500 tons of crude oil.

Retrospecting the development process of the western South China Sea oilfield, there are several key points: in 1957, oil and gas seedlings were first discovered in Yinggehai. In 1960, we used "pier drilling" to drill in Yinggehai, the first discovery well in China Sea, yingchong 1 well. In 1960, the 150kg crude oil, the first barrel of China's offshore oil, was recovered from well Ying Chong 2. In 1964, the first offshore drilling rig in China, buoy drilling platform, was used to drill the first offshore oil exploration well Hai-1 in Yinggehai.

Then in 1986, Weizhou 10-3 produced the first barrel of oil. In 1996, Yacheng 13-1 gas field, the largest offshore cooperative gas field in China, was put into operation. In 2008, it produced 10 million square meters for the first time. By the end of 2018, the total output remained more than 10 million square meters for 11 consecutive years, with a cumulative production of crude oil and natural gas equivalent of 200 million tons.

Taking Ya Cheng 13-1 gas field as an example, it was discovered in July 1983 by the China National Offshore Oil Corporation and the acco company in Yinggehai cooperation block. It is the first offshore gas field in China and the first high yield field in the western waters of the South China Sea. It has been discovered and developed by foreign cooperation. Since its commissioning in January 1996, it has stabilized gas supply to 23 years, and the total volume of gas supply exceeds 52 billion.

Ya Cheng 13-1 gas field is located in the sea area of Yinggehai, Nanhai, which is composed of three offshore production platforms and Nanshan terminals. Nanshan terminal is located in Nanshan village, 40 kilometers west of the city of Shandong Province. It bears the task of supplying and handling natural gas and condensate, and all logistic support of the 13-1 gas fields in Ya Cheng. The reporter of Economic Observation Network learned during his visit to Nanshan terminal that the terminal has a high degree of automation, which can realize remote control operation of offshore platform facilities during typhoon evacuation, ensure continuous production of gas fields, and take into account key energy-saving indicators such as comprehensive energy consumption and carbon emissions.

According to the introduction, CNOOC branch company has effectively reduced the cost of oil by enhancing oil recovery, decreasing oil field decline rate, increasing exploration research and optimizing the whole project. In the future, CNOOC will build 7 major oil field development systems such as Wushi, Hai, Redon and so on, and achieve stable annual production capacity of 450-500 tons of crude oil.