China National Offshore Oil Corporation (CNOOC) announced today the discovery of a new oil field in the South China Sea, potentially holding more than 100 million tons of crude oil, equivalent to approximately 733 million barrels. The field, named Huizhou 19-6, lies about 100 miles offshore the coastal province of Shenzhen.
Initial test drilling has yielded promising results, with daily production reaching 413 barrels of crude oil and 68,000 cubic meters of natural gas. This discovery adds to the growing interest in deepwater and ultra-deepwater oil and gas deposits, as exploration companies move beyond accessible shallower waters to tap into more challenging, deeper reserves.
This announcement follows a landmark achievement last October when CNOOC reported record oil and gas production from its Deep Sea #1 project, the company’s first ultra-deepwater venture. These efforts underscore China’s increasing drive to secure local energy supplies by exploiting untapped resources beneath the sea.
The focus on domestic oil and gas production is pivotal for China’s strategy to reduce its reliance on energy imports. To support this initiative, the Chinese government has significantly increased investments in both onshore and offshore exploration, despite the technical challenges presented by deepwater drilling. These include extreme temperatures, high pressure, and complex geological conditions.
Onshore, Chinese energy companies have also pushed the boundaries of exploration. In the Tarim Basin, CNPC (China National Petroleum Corporation) has embarked on ambitious drilling projects, including depths of up to 11,000 meters. In 2023, the state oil giant achieved a milestone with a well that broke the 10,000-meter depth mark, setting records for both the deepest well in Asia and the fastest drilled well of its depth.
These advancements reflect China’s growing capacity to tackle some of the world’s most challenging oil and gas extraction endeavors, both offshore and onshore, as the nation strives to bolster its energy security.