China National Offshore Oil Corp. (CNOOC) encountered a mid-sized oil find at the Liuhua 20-2 structure in the eastern South China Sea.
The Liuhua field. Image from CNOOC.
Liuhua 20-2 is located in Northern Slope Belt of Baiyun Sag in the Pearl River Mouth basin at approximately 390m water depth.
The discovery, made at the LH20-2-1 well, was found at a depth of about 2970m, where oil pay zones, with a total a total thickness of 35.2m were encountered. The oil production of the well tested around 8000 b/d per day and the crude oil density is approximately 0.75, CNOOC said.
According to CNOOC, Liuhua 20-2 has further proved the huge exploration potential of Baiyun Sag in the Pearl River Mouth basin, where the company expects the area to become the new reserves growth area of deepwater exploration of crude oil in South China Sea.
Last month, CNOOC awarded the Technip/China Offshore Oil Engineering Co. consortium a front-end engineering design contract for two tension leg platforms for the Liuhua 11-1 and 16-2 joint development project in the South China Sea.
The company’s 2015 business strategy and development plan includes a net production target set at 475-495 MMboe, with 67% of that coming from China. Within the year, the company plans to drill around 162 exploration wells, acquire approximately 36,000km of 2D seismic data, and about 14,000sq km of 3D seismic data.
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