CNOOC announces early production in Xijiang 30-2 and Bozhong 19-2 oilfields

CNOOC Limited (SEHK: 00883, SSE: 600938) has announced the early commencement of production at its Xijiang 30-2 Oilfield, situated in the Xijiang 30-1 Block in the eastern South China Sea. This development marks a significant milestone as the company accelerates its offshore operations to enhance oil output. Located in waters averaging 98 meters deep, the project features a newly constructed drilling platform with plans to activate 23 development wells. The peak output is projected at 26,000 barrels of oil equivalent per day by 2027, consisting of medium crude oil. CNOOC Limited, holding a 100% interest, operates the project.

Bozhong 19-2 Project Starts Early Amid Bohai Bay Expansion

In another major advancement, CNOOC Limited also commenced production at its Bozhong 19-2 Oilfield in central Bohai Bay earlier this month. The project is positioned at an average water depth of 20 meters and includes a central processing platform, supplemented by four unmanned wellhead platforms. The development entails 59 wells—34 for production and 25 for water injection. The company anticipates a peak output of approximately 18,800 barrels of heavy crude per day by 2025.

Efficient construction methods, including smart engineering and standardized processes, reduced the development timeline, underscoring CNOOC’s commitment to boosting its offshore oil production capabilities. CNOOC Limited retains full ownership and operating control of this project.

Expansion into Brazil: New Concessions in the Pelotas and Santos Basins

CNOOC Limited is not only expanding its operations in China but also internationally. The company’s subsidiary, CNOOC Petroleum Brasil Ltda, has secured four offshore exploration blocks in Brazil’s Pelotas and Santos Basins through the Brazilian National Agency for Petroleum. These concessions, acquired in the 4th Permanent Concession Offer Cycle, cover an area of approximately 2,600 square kilometers, with depths ranging from 600 to 3,000 meters.

The subsidiary holds a 100% stake in block S-M-1813 in the Santos Basin. Additionally, it has acquired a 20% non-operating interest in three blocks (P-M-1737/39/97) in the Pelotas Basin, where Petrobras and Shell hold 50% and 30% stakes, respectively.

Expert Insight: Efficient Strategies Fueling CNOOC’s Growth

Experts believe CNOOC’s ability to expedite these developments highlights its technical expertise and strategic focus on expanding its production portfolio. Analysts note that the company’s proactive approach in securing international blocks, particularly in Brazil, shows a diversified strategy aimed at mitigating market risks while maximizing global output potential.

CNOOC Limited’s stock (SEHK: 883) currently trades at around HKD 18.76, reflecting a steady increase of 44.31% over the year, despite recent market volatility. Analysts from MarketScreener have recommended a ‘buy’ rating, maintaining an optimistic outlook for the company’s future growth prospects given its expansion efforts both domestically and internationally.

With these strategic moves, CNOOC Limited is reinforcing its position as a leader in offshore oil and gas production. The early commencement of key projects in China and the expansion into Brazil’s offshore basins demonstrate its commitment to enhancing both its domestic and global oil output.