CNOOC starts production at Shenhai-1 Phase II natural gas project

It is expected to reach peak production of 162 million cubic feet.

China National Offshore Oil Corporation (CNOOC) has started production at the Shenhai-1 Phase II Natural Gas Development Project  located in the Qiongdongnan Basin, northern South China Sea.

According to CNOOC, the facility has an average water depth of around 900 metres. Its main production facilities include a new fixed production platform and three centralised subsea wellheads, with 12 development wells planned to be commissioned. 

Shenhai-1 Phase II is expected to reach peak production of 162 million cubic feet of natural gas and 3,931 barrels of condensate per day in 2025.

"The project has successfully overcome the world-class challenge of deep-water high-pressure oil and gas reservoir development,” said CNOOC Chairman Wang Dongjin.

“It witnesses effective large-scale conversion of reserves into production from the 'South China Sea trillion-cubic-meters-level gas region', and provides a stable supply of clean energy for the economic and social development of South China,” he added.

CNOOC holds 100% interest in this project and is the operator.