Oil and gas discovery reported in South China Sea

China National Offshore Oil Corporation (CNOOC) has recently made a significant oil and gas discovery in the Eastern South China Sea. This discovery came after the drilling of the HZ26-6-1 well in the Huizhou 26-6 structure located in the Huizhou Sag in the Zhu1 Depression of the Pearl River Mouth Basin. The water depth in this area averages about 113 meters.

According to CNOOC, this successful exploration marks the first time the company has achieved a commercial and highly productive oil and gas flow in buried hill exploration in the Eastern South China Sea. This breakthrough in Paleogene and buried hill complex oil and gas reservoir in the Pearl River Mouth Basin highlights the vast exploration potential in this new field.

The discovery well was drilled to a total depth of 4,276 meters, encountering oil and gas pay zones with a total thickness of approximately 422.2 meters. Subsequent testing of the well resulted in around 2,020 barrels of oil and 15.36 million cubic feet of gas being produced per day.

This discovery is expected to become the first mid-to-large sized condensate oil and gas field in the shallow water area of the Pearl River Mouth Basin. Additionally, in May, CNOOC began production from the Penglai 19-3 oilfield area 4 adjustment/Penglai 19-9 oilfield phase II project in the Bohai Sea, China, where the company operates with a 51% stake.

Overall, this discovery showcases the company’s commitment to exploration and underscores the potential for further oil and gas discoveries in the region.