PRODUCTION has started at China National Offshore Oil Corporation’s (CNOOC Ltd) Kenli 3-2 oilfields in May, located in the southern Bohai Sea at an average water depth of 20 metres.
The project, which consists of the Kenli 3-2, Bozhong 34-6/7, southern part of Bozhong 29-4 and Bozhong 35-2 oilfields, is expected to produce 35,000 barrels of oil per day at peak production.
The primary production facilities include seven offshore platforms and one onshore oil processing terminal.
The news came after CNOOC achieved a total net production of 108.1 million barrels of oil equivalent in the first quarter of 2014, representing 15.5% increase year over year.
CNOOC’s discovery of gas in the nearby Bozhong 22-1 structure in south central Bohai in March demonstrated the exploration potential of buried hills around the south slope in the Bozhong Sag, it said in the quarterly announcement.
Oil and gas sales revenues rose 6.9 per cent on the back of higher production, with an average realised gas price of US$6.33 per thousand cubic feet, representing an increase of 9.3% year on year, while the company’s average realized oil price was US$104.63 per barrel.
During the period, the company’s capital expenditures for exploration, development and production amounted to RMB19.31 billion.
CNOOC chief executive Li Fanrong said the company made significant progress in exploration during the first quarter, laying a solid foundation for the company’s sustainable development.