The Chinese state-owned oil and gas company CNOOC has started production on the deepwater Shenhai-1 Phase II Natural Gas Development Project, located off Hainan Province in the South China Sea. The project is expected to reach peak production of 162 mcf/d (1.7 bcm/year) of natural gas and 3.9 kb/d of condensate in 2025.
The Shenhai project is located in the Qiongdongnan Basin with an average water depth of approximately 900 m. The main production facilities include a new fixed production platform and 3 centralised subsea wellheads, with 12 development wells. CNOOC holds a 100% interest in this project and is the operator.
CNOOC’s oil and gas output reached 678 mboe in 2023, an 8.7% increase compared to 2022. At the national level, China’s gas production rose by 5.6% to 272 bcm in 2023, while reserves stood at 2,887 bcm.