China’s CNOOC makes groundbreaking oilfield discovery in Bohai Sea
China’s state-owned oil and gas giant, CNOOC Ltd., has struck gold with a major oilfield discovery in the Bohai Sea. This discovery has added a whopping 100 million tonnes of oil equivalent proved in-place volume to their reserves, the company announced on Monday.
The Qinhuangdao 27-3 oilfield, situated in the north-central waters of the Bohai Sea, is where this significant find was made. The field has been tested to yield around 742 barrels of crude oil per day from a single well, showcasing its immense potential.
This discovery comes on the heels of CNOOC’s recent announcement of finding another reserve in the South China Sea, further solidifying their position in the oil and gas industry.
CNOOC’s focus on developing China’s offshore oil and gas reserves is part of a broader strategy to counterbalance declining output from aging onshore fields, demonstrating their commitment to growth and innovation.
In a bold move, CNOOC raised its 2024 production target by 8 percent, aiming for a record-breaking 700 to 720 million barrels of oil equivalent. With production expected to reach 675 million boe in 2023, the company is setting ambitious goals for the future.
China’s industrial output shows resilience
China’s industrial output and retail sales have exceeded expectations in the January-February period, signaling a strong start to the year. Despite challenges in the property sector, these positive economic indicators provide hope for policymakers and analysts.
The data released on Monday, coupled with recent export and consumer inflation figures, are a promising sign for China’s economic growth target of 5 percent for the year.
FASTFACTS
• The discovery was made at the Qinhuangdao 27-3 oilfield located in the north-central waters of the Bohai Sea.
• The field has been tested to produce about 742 barrels of crude oil per day from a single well.
• The announcements come as CNOOC invests heavily in the development of China’s offshore oil and gas reserves.
“China’s activity data has shown signs of stabilization at the beginning of the year. However, there are still concerns about the sustainability of this growth,” said Louise Loo, China economist at Oxford Economics.
With industrial output rising by 7 percent in the first two months of the year and retail sales increasing by 5.5 percent, China is on a positive trajectory, bolstered by strong performance in various sectors.
Challenges in the property sector persist
While China’s economy shows resilience in certain areas, the property sector continues to pose challenges. Despite some narrowing in property investment declines, the sector remains unstable, raising concerns among stakeholders.
Property sales have seen a significant decline, reflecting weak demand and highlighting the ongoing struggles in the real estate market. The Lunar New Year holiday provided a temporary boost to some industries, but the overall outlook for the property sector remains uncertain.