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CNOOC announces major oil discovery in South China Sea


oil discovery in South China Sea, news

CNOOC Ltd, a prominent Chinese state-owned enterprise specializing in oil and gas, recently achieved a notable milestone by discovering a significant new oil reserve. This discovery is substantial, with over 100 million tons of oil equivalent confirmed, representing a major boost to China's energy resources.


The announcement came on Friday, underscoring the ongoing efforts by Chinese energy companies to expand their resource base. Such discoveries are crucial for China's energy strategy, especially as the country continues to seek ways to bolster its energy security and meet its growing energy demands.


This newly discovered reserve is situated in the Kaiping South oilfield, a deepwater exploration zone within the Pearl River Delta, close to Guangdong province. This location is strategically important for China's offshore energy exploration.



The reserve mainly contains light crude oil, which is typically more desirable due to its ease of refining and higher economic value compared to heavier crude varieties. The presence of light crude in this new reserve enhances its significance and potential profitability for CNOOC and China's energy sector as a whole.


CNOOC's substantial investment in offshore oil and gas reserves is a strategic component of China's broader effort to diversify and strengthen its energy sources. This is particularly pertinent given the decline in output from older onshore oil fields, which have been a traditional source of China's oil production.


The focus on offshore resources is part of a wider national agenda to reduce dependence on imported energy and sustain the country's economic growth. By concentrating on offshore exploration and extraction, CNOOC is not only expanding China's energy reserves but also demonstrating the country's advancing capabilities in deepwater exploration and technology.



In light of the successful exploration and anticipated future yields, CNOOC has confidently increased its production target for 2024. The company now aims to produce a record-breaking amount of oil, targeting between 700 million to 720 million barrels of oil equivalent.


This adjustment, an 8% increase from previous goals, is a testament to the success of CNOOC's exploration efforts and the potential of China's offshore reserves. The bulk of this production is expected to be sourced from offshore fields, particularly in the Bohai Sea in eastern China and in the South China Sea.


This strategic focus on offshore production not only underscores CNOOC's role in enhancing China's energy self-reliance but also reflects the country's commitment to securing a stable and robust energy future.


08.03.2024



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