CNOOC Limited CEO recently announced that the company has started production at its Penglai 19-3 oilfield 1/3/8/9 comprehensive adjustment project, one of the biggest offshore oilfields in China. The project is located 80 kilometers southeast from Penglai city and 216 kilometers northwest from Tanggu, in the south central part of Bohai Sea.
Average water depth at the site is in the range of 27-33 meters. The existing facilities of the company in the oilfield are being fully employed for the project. A central processing platform along with two wellhead platforms is being used for the purpose of production. CNOOC estimates peak crude output capacity from the project at around 58,700 barrels per day, which will likely be reached in 2020.
The company is on track with its Penglai 19-3 oilfield 1/3/8/9 comprehensive adjustment project startup in the second half of the year. Notably, three out of the five planned new projects for 2018, including this project, has already started production. This is expected to help CNOOC reach its 2018 output target of 470-480 million barrels of oil equivalent. Of the targeted production, 81% is expected to be oil while the rest will be gas.
The commencement of production at the Penglai 19-3 comprehensive adjustment project assumes significance as CNOOC saw its oil production from the Bohai Bay decline 2.3% year over year for the first six months of 2018. Considering that approximately 35% of CNOOC`s total production comes from the Bohai Bay, the Penglai 19-3 Comprehensive Adjustment Project start-up should contribute to the company`s mid-to-long term volume growth. Moreover, the development is also expected to aid the company in its bid to stabilize yearly output from the region at 30 million tons over the next decade.
Notably, the Chinese upstream oil major CNOOC is the operator in the field with 51% interest, while the rest is owned by the Houston, TX-based energy giant ConocoPhillips COP .
Based in Central, Hong Kong, CNOOC has gained 53.8% in the past year compared with 30.8% collective growth of its industry .
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