CNOOC Starts Production on Penglai 25-6 Oil Field Area 3 Project
CNOOC’s Bohai Sea Project has started production ahead of schedule.
China National Offshore Oil Corporation (CNOOC) announced on 14 December that its Bohai Sea Project—the Penglai 25-6 oil field area 3—has started production ahead of schedule.
The biggest offshore oil field and the second biggest oil field in China, the Penglai is located in the south central Bohai Sea, with average water depth of about 27 m. In addition to fully utilizing the existing processing facilities of Penglai oil fields, the project has built a new wellhead platform and plans 58 development wells, including 38 production wells and 20 water-injection wells. The project is expected to reach its peak production of approximately 11,511 B/D of crude oil in 2023.
Six successful appraisal wells were also drilled, which confirmed the presence of hydrocarbons in reservoirs located within Miocene, Lower Minghuazhen, and Guantao sandstones.
The Penglai 19-3 oil field is located in Block 11/05 of Bohai Bay, approximately 235 km southeast of Tanggu. The production-sharing contract for block 11/05 was signed between CNOOC and ConocoPhillips China (COPC) in December 1994; the field was discovered jointly by CNOOC and COPC in 1999.
The oil field was developed in two phases. Phase I production started in December 2002; production from the wellhead platform C, which is tied back temporarily to the production facilities of Phase I, began in June 2007.
Since June 2020, CNOOC has announced five production startups: the Jinzhou 25-1 oilfield 6/11 area project, the Liuhua 16-2 oilfield/ 20-2 oilfield joint development project, the Nanbao 35-2 oilfield S1 area project, the Luda 21-2/16‑3 regional development project, and the Qinhuangdao 33-1S oilfield phase-I project.
In Q3 2020, CNOOC achieved a total net production of 131.2 million BOE, which the company said represented an increase of 5.1% year over year. Production from China was said to have increased by 10.4% year over year to 88.6 million BOE.
In November, CNOOC revealed that the Liuhua 29-1 gas field had begun production; in September, the company said the Bozhong 19-6 condensate gas field pilot area development project had also begun.
Operator CNOOC holds 51% interest while COPC holds 49% interest in the Penglai 25-6 oilfield area 3 project.