Beijing has deployed a new oil rig in the disputed waters of the South China Sea. Photo: Weibo
OilPrice.com: Chinese Oil Major Strikes It Big In South China Sea
The listed arm of China National Offshore Oil Corporation (CNOOC) said on Monday that it had made a significant discovery of oil and natural gas in the eastern part of the South China Sea.
A discovery well at the Huizhou 26-6 discovery in the Pearl River Mouth Basin in the Eastern South China Sea was tested to produce around 2,020 barrels of oil and 15.36 million cubic feet of gas per day.
CNOOC expects the new oilfield to become the first mid-to-large sized condensate oil and gas field in the shallow water area of Pearl River Mouth Basin.
CNOOC's new discovery could be a boon to China's ambitions to boost its domestic oil and natural gas production in an attempt to lessen its dependence on oil and gas imports. State-controlled CNOOC is one of the companies that China has tasked with replacing domestic reserves, even as the oil price crash has forced Chinese state oil majors to cut capital expenditures for this year.
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Update: CNOOC proves oil and gas in complex South China Sea play (Offshore)
WNU Editor: This discovery has just raised the stakes in the South China Sea.
