CNOOC begins production at Huizhou 26-6 Oilfield Development Project

CNOOC Limited (SEHK: 00883; SSE: 600938) has achieved a significant milestone with the commencement of production at its Huizhou 26-6 Oilfield Development Project, located in the Pearl River Mouth Basin in the South China Sea. This development not only underscores the company’s technological advancements in offshore energy production but also highlights its role in bolstering regional economic growth in the Guangdong–Hong Kong–Macao Greater Bay Area.

Huizhou oilfield project sets a benchmark for offshore innovation

The Huizhou 26-6 Oilfield Development Project is a first-of-its-kind initiative for CNOOC Limited in the South China Sea, leveraging cutting-edge technology to extract light crude oil and natural gas. Situated at an average water depth of 110 meters, the project includes the deployment of China’s first intelligent drilling platform, which enhances operational precision and resource recovery.

A total of 19 wells are planned for commissioning, comprising two oil wells and 17 gas wells. The project also utilises the modified FPSO Nan Hai Fen Jin, designed to efficiently store and process extracted resources. Peak production is anticipated to reach 20,600 barrels of oil equivalent per day by 2027.

Experts have highlighted the Huizhou oilfield project as a major advancement in offshore energy production, with its innovative use of technology expected to set new benchmarks in the industry. By strengthening energy security and supporting the Greater Bay Area’s economic framework, this development positions CNOOC Limited as a leader in sustainable resource extraction.

Last month’s Long Lake Northwest launch strengthens global operations

In addition to the recent achievements in the South China Sea, CNOOC Limited announced last month that production had commenced at its Long Lake Northwest Project in Alberta, Canada. This project is being developed by CNOOC Petroleum North America ULC, a wholly owned subsidiary of the company, which holds 100% ownership and operational control.

The Long Lake Northwest project employs steam-assisted gravity drainage (SAGD) technology, a sophisticated method of recovering heavy crude oil. Infrastructure includes a new well pad and four pipelines, with eight well pairs planned for development. The site is expected to reach peak production of 8,200 barrels of crude oil per day by 2025.

The Alberta-based initiative complements CNOOC Limited’s global strategy by expanding its presence in the Alberta energy sector. Analysts have noted the project’s environmental and economic advantages, with SAGD technology reducing emissions while optimising resource extraction.

Pioneering sustainable energy practices

Together, the Huizhou 26-6 Oilfield Development Project and Long Lake Northwest demonstrate CNOOC Limited’s commitment to innovation, efficiency, and sustainability in offshore energy production. By integrating advanced solutions such as the intelligent drilling platform and SAGD technology, the company is charting a path for responsible energy development.

As a cornerstone of its international growth strategy, CNOOC Limited continues to prioritise the delivery of light crude oil and natural gas production while addressing the energy needs of both local and global markets.