This week, CNOOC announced that China’s subsea pipeline network has surpassed a milestone of 10,000 kilometers. This achievement was celebrated in the media as a significant step forward in the offshore oil and gas sector, emphasizing China’s ambitions to become less dependent on energy imports.
To diminish its reliance on imported fossil fuels, China has been ramping up its oil and gas production capabilities, both on land and at sea. Earlier this year, crude oil imports peaked at a remarkable 12 million barrels per day, making the pipeline network’s enhancement an integral part of the energy transition strategy.
CNOOC’s report indicates plans to extend the total length of its subsea pipeline network to over 13,000 km by 2030, as part of efforts to solidify the nation’s offshore energy transport framework. It was also mentioned that this network may be adaptable for the transportation of hydrogen and shale gas in the future, as referenced by the South China Morning Post in its report.
According to CNOOC, the densest section of this pipeline network lies in Bohai Sea, particularly in Bohai Bay, which features approximately 3,200 miles of pipelines dedicated to oil and gas production.
Recently, CNOOC also kicked off a new project in the Bohai Sea, named Kenli 10-2. This initiative is noted to be the largest shallow-water oil field offshore China. It comprises 79 development wells, including 33 cold recovery wells, 24 thermal recovery wells, 21 water injection wells, and one water source well. CNOOC anticipates that the project will reach a peak output of around 19,400 barrels of oil equivalent daily by 2026, primarily consisting of heavy crude.
This year, the company has also launched production at two projects in the South China Sea. One of them, the Wenchang 16-2 Oilfield Development Project, involves drilling 15 production wells, aiming for peak output of 11,200 barrels daily by 2027. Another significant achievement is the successful initiation of Phase 2 of the Deep-Sea No. 1 natural gas project, which enhances domestic gas output by 4.5 billion cubic meters annually. This project, recognized as China’s largest deepwater gas initiative to date, reached full operational capacity on June 26, reported CNOOC officials.
CNOOC, the leading state-owned entity overseeing offshore oil and gas exploration both domestically and abroad, earlier disclosed that its 2024 net oil and gas output is projected at approximately 720 million barrels of oil equivalent, marking a record for the sixth consecutive year. In line with this production success, the company has projected an 11.4% increase in profits for 2024, reaching $19 billion.
