Chinese State-Owned Giant CNOOC Strikes Oil and Gas Jackpot in Beibu Gulf

Chinese state-owned oil and gas giant China National Offshore Oil Corporation (CNOOC) has enriched its oil and gas arsenal with a new hydrocarbon discovery in the Beibu Gulf of the South China Sea.

While disclosing its latest hydrocarbon achievement, which it sees as “a major breakthrough in the exploration of Paleozoic buried hills,” CNOOC elaborated that the exploration well WZ10-5-1Sa encountered an oil and gas pay zone of 283 meters, with a total drilled depth of approximately 4,840 meters at the Weizhou 10-5 oil and gas field in the Beibu Gulf, with an average water depth of about 37 meters.

Xu Changgui, CNOOC’s Chief Geologist, commented: “The Weixinan Sag in the Beibu Gulf Basin is one of the most explored sags offshore China. In recent years, the company has been researching on the reservoir formation theories of the complex buried hills and the relevant technologies needed.

“The breakthrough in the exploration of Paleozoic granite buried hills reveals the vast exploration prospects of the buried hills in the Beibu Gulf Basin. It will also provide guidance for exploration in similar fields offshore China.”

According to the Chinese player, the test results indicate the well produces approximately 13.2 million cubic feet of natural gas and about 800 barrels of crude oil per day. This is said to mark a significant milestone in natural gas exploration in the granite-buried hills in the Beibu Gulf Basin.

Zhou Xinhuai, CNOOC’s Chief Executive Officer, explained: “In recent years, the company has made large and medium-sized oil and gas discoveries in various types of buried hills offshore China, which have been further expanding the company’s oil and gas resource base.

“The discovery in the Beibu Gulf Basin will help to stabilize energy supply and continuously contribute to the economic and social development.”

This hydrocarbon find comes a month after CNOOC brought online an oilfield project in Bohai Bay, which is anticipated to make use of carbon capture, utilization, and storage (CCUS) to enable low-carbon barrels in the region.

The Chinese player has earmarked up to $19 billion to expand its oil and gas production this year and harness more offshore wind and onshore solar, alongside other low-emission developments and technologies to optimize its hydrocarbon business.

The company had a productive 2024, with many oil and gas discoveries springing up and projects coming on stream during the year, including the firm’s latest gas project in the Yinggehai Basin off the coast of China.