China’s state-owned offshore oil and gas firm CNOOC has announced the commencement of production at Nanbao 35-2 oilfield S1 area offshore China.
The Nanbao 35-2 oilfield S1 area is located in the central Bohai in an average water depth of 17m.
In addition to fully using the existing facilities of the Nanbao 35-2 oilfield, the major production facility includes one unmanned wellhead platform, CNOOC said.
The Chinese firm, which operates the project with a 100% interest, intends to drill a total of three development wells.
According to the company, the project is expected to reach peak production of 1,800bpd of crude oil next year.
CNOOC is the largest producer of offshore crude oil and natural gas in China. It is primarily engaged in exploration, production, development, and sale of crude oil as well as natural gas.
Last month, CNOOC said that its profits in the first half of the year plummeted by nearly two-thirds as Covid-19 pandemic affected fuel demand. In the first half of this year (H1-2020), CNOOC registered a profit of $1.5bn.
In June, CNOOC announced that it made a significant discovery of Huizhou 26-6 in the Eastern South China Sea.
In April, CNOOC lowered its planned capital expenditure (Capex) and production guidance for 2020. It said the move will strengthen it to face the pandemic.