CNOOC starts production at Wushi 17-2 Oilfields Development Project in Beibu Gulf

CNOOC Limited, listed on the Hong Kong Stock Exchange as SEHK: 00883 (HKD Counter) and 80883 (RMB Counter), and on the Shanghai Stock Exchange as SSE: 600938, announced today the commencement of production at its Wushi 17-2 Oilfields Development Project. Located in the Beibu Gulf, the project is set to become a significant contributor to the company’s oil and gas output.

The Wushi 17-2 Oilfields Development Project is situated in the Beibu Gulf, with an average water depth of approximately 28 meters. The project includes the installation of a new wellhead platform and an oil and gas processing terminal. A comprehensive drilling plan has been outlined, with 43 development wells expected to be commissioned. This includes 28 production wells, 14 water-injection wells, and one appraisal and water source well.

The project is designed to achieve a peak production capacity of approximately 9,900 barrels of oil equivalent per day by 2026. The oil extracted from this field is classified as light crude, which is generally more desirable due to its lower sulfur content and ease of refining. This will further enhance the value of the output from Wushi 17-2.

CNOOC Limited holds an 80% interest in the Wushi 17-2 project and serves as the operator, underscoring its strategic commitment to expanding its production capacity and maintaining a strong presence in the Beibu Gulf. The project’s development aligns with CNOOC Limited’s broader strategy to enhance its production portfolio through the development of high-quality assets.

Recent Developments and Strategic Initiatives

The commencement of production at the Wushi 17-2 Oilfields Development Project is part of CNOOC Limited’s larger plan to bolster its upstream oil and gas portfolio. In recent years, the company has focused on optimizing its asset portfolio, enhancing operational efficiency, and expanding its global footprint.

In August 2024, CNOOC Limited reported a significant oil discovery at the Bozhong 26-6 oil field in the Bohai Sea. This new discovery, with proven reserves exceeding 100 million metric tons of oil equivalent, is expected to become a major production base for the company in the coming years. The successful drilling and exploration efforts at Bozhong 26-6 are reflective of CNOOC Limited’s technological advancements in deep-sea drilling and exploration, reinforcing its leading position in the Chinese offshore oil sector.

Earlier in 2024, CNOOC Limited also announced the commissioning of the Enping 15-1 oilfields cluster in the Pearl River Mouth Basin, with a projected peak output of 35,500 barrels of oil equivalent per day. This project, like Wushi 17-2, involves a combination of innovative offshore engineering solutions and digital technologies to maximize output while minimizing environmental impact.

Furthermore, CNOOC Limited has been actively seeking international opportunities. The company has a significant presence in overseas markets, including operations in Africa, South America, and Southeast Asia. In June 2024, CNOOC Limited acquired a stake in Brazil’s Búzios oil field, one of the world’s largest deepwater oil discoveries, as part of its strategy to diversify its asset base and leverage global oil and gas market dynamics.

Focus on Sustainability and Digital Transformation

In addition to expanding its production capacity, CNOOC Limited has been committed to sustainability and digital transformation. The company is increasingly adopting renewable energy initiatives and aims to achieve carbon neutrality by 2060, in line with China’s national targets. CNOOC Limited is investing in offshore wind power projects and exploring the use of carbon capture and storage (CCS) technology to reduce its carbon footprint.

The company is also leveraging digital technologies to optimize its operations. This includes the use of artificial intelligence (AI), big data analytics, and Internet of Things (IoT) solutions to enhance exploration accuracy, improve production efficiency, and ensure safety in its offshore operations. These initiatives are part of CNOOC Limited’s broader digital transformation strategy to stay competitive in the rapidly evolving energy landscape.

Outlook

The commencement of production at Wushi 17-2 marks a significant step for CNOOC Limited as it continues to advance its upstream portfolio. With its strategic location and well-planned development infrastructure, the Wushi 17-2 Oilfields Development Project is poised to become a key asset in the company’s growth trajectory in the coming years. Coupled with recent discoveries, international expansion, and a focus on sustainability, CNOOC Limited is well-positioned to strengthen its role as a leading player in the global energy sector.