China’s state-owned offshore oil and gas major CNOOC has commenced production from the Penglai 19-3 oilfield area 4 adjustment / Penglai 19-9 oilfield phase II project located offshore China.
The Penglai 19-3/19-9 oilfields are located in Bohai Bay with an average water depth of approximately 28m.
Bohai Bay is the largest oil and gas production base offshore China, among those owned CNOOC.
According to CNOOC, a new wellhead platform has been built, with 47 wells planned in total, which includes 30 production wells, 16 water injection wells and an appraisal well.
In a press statement, CNOOC said: “This new wellhead platform will fully utilize the existing processing facilities of Penglai 19-3 oilfield.
“The project is expected to reach its peak production of approximately 15,681 barrels of crude oil per day in 2022.”
CNOOC holds a 51% interest in the project and serves as the operator while US oil giant ConocoPhillips subsidiary ConocoPhillips China holds the remaining 49% interest in the Penglai oilfield project.
Last month, CNOOC lowered its planned capital expenditure (Capex) and production guidance for 2020. It said the move will strengthen it to face the Covid-19 pandemic.
In March this year, CNOOC made a Kenli 6-1 discovery in Bohai Bay, which the company believes is the first large-sized oil field in the Laibei lower uplift. This is in the southern area of the Bohai basin.
In January this year, CNOOC announced plans to increase its 2020 capital expenditure (capex) from CNY85bn to CNY95bn ($12.34bn to $13.7bn).