Middle East

CNOOC discovers shale oil in South China Sea exploration well

July 29, 2022

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China’s CNOOC Ltd is tapping commercial streams of oil and gas from shale exploration wells in the South China Sea, marking the first successful shale well drilled offshore China, state media reported Thursday.

Exploration well Weiye-1, submerged in the southwest trough of the Beiwuwan Basin in the South China Sea, has tested daily production of 20 cubic meters (126 barrels) of oil and 1,589 cubic meters of natural gas, Shanghai Securities Journal reported.

The report added that about 1.2 billion tonnes of shale oil resources are expected in the entire Beiwuwan basin.

CNOOC Ltd’s press department did not immediately respond to a request for comment.

Under the central government’s call to increase the security of the country’s energy supply, state oil companies are making greater efforts to exploit shale deposits despite geological challenges and higher costs. increase.

By late 2021, China was producing just 35,000 barrels per day (bpd) of shale oil extracted from shale rock, making it more complex and expensive than conventional crude oil.

This represents less than 1% of total oil production.

(Reuters – Reported by Chen Aizhu)

https://www.oedigital.com/news/498399-cnooc-finds-shale-oil-in-south-china-sea-exploration-well CNOOC discovers shale oil in South China Sea exploration well

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