CNOOC Limited Announces New Deepwater Gas Discovery

Strategic Insights -

CNOOC Limited, a subsidiary of China National Offshore Oil Corporation (CNOOC), has announced a new deepwater gas discovery, the Liuhua (LH) 29-1 gas field, located in the eastern South China Sea. The discovery was made by CNOOC Ltd's exploration partner Husky Oil China Limited, a wholly owned subsidiary of Husky Energy. This is the third such deepwater discovery in the region, following the Liwan (LW) 3-1 gas field in 2006 and the LH 34-2 field in December. The new discovery is expected to share development and production facilities with the previously discovered fields.

Key Takeaways:

  • The Liuhua (LH) 29-1 gas field was discovered by Husky Oil China Limited, a subsidiary of Husky Energy, in partnership with CNOOC Ltd.
  • This is the third deepwater gas discovery in the eastern South China Sea, following the Liwan (LW) 3-1 gas field in 2006 and the LH 34-2 field in December.
  • The LH 29-1 field will share development and production facilities with the LW 3-1 and LH 34-2 fields.
  • The gas well LH 29-1-1 is expected to produce 57 million cubic feet (1.61 million cubic meters) of gas per day, based on a drill stem test (DST).
  • The LW 3-1 field has a verified gas reserve of between 100 billion and 150 billion cubic meters, with an annual production of 5-8 billion cubic meters.
  • Husky will appraise the LH 29-1 field later this year to further verify its reserves.

Statistics:

  • The global verified gas reserves were recorded at 183.66 trillion cubic meters as of January 1 this year, according to Zhuochuang Info. Co.
  • The LH 29-1-1 well is expected to produce 57 million cubic feet (1.61 million cubic meters) of gas per day.
  • The LW 3-1 field is expected to produce 5-8 billion cubic meters of gas per year.
  • The LH 34-2-1 well is expected to produce 55 million cubic feet (1.56 million cubic meters) of gas per day, based on a DST.
  • The LH 29-1 field is expected to have a similar gas reserve to the LH 34-2 field, although exact figures have not been published.

Sources:

  • "CNOOC Limited announces new deepwater gas discovery in Eastern South China Sea", CNOOC Limited
  • "Deepwater gas discoveries in China", Zhuochuang Info. Co.
  • "Global verified gas reserves reach 183.66 trillion cubic meters", Zhuochuang Info. Co.
  • "Husky Energy's deepwater gas discoveries in China", Husky Energy