China National Offshore Oil Corporation (CNOOC) has initiated production at the Xijiang Oilfields 24 Block development, marking a key step in its offshore expansion strategy. The project is expected to contribute approximately 100,000 barrels of oil equivalent per day to CNOOC’s annual output.
- CNOOC has commenced production at the Xijiang Oilfields 24 Block in the South China Sea.
- The project is expected to deliver 100,000 barrels of oil equivalent per day.
- Production is supported by an FPSO vessel and subsea well infrastructure.
- The site is located about 250 km southeast of Guangzhou.
- This marks the latest phase in CNOOC’s offshore expansion strategy.
- Contribution represents a modest but strategic increase in China’s domestic crude output.
CNOOC officially launched operations at the Xijiang Oilfields 24 Block in the South China Sea, signaling the successful completion of a major offshore development project. The facility is designed to produce around 100,000 barrels of oil equivalent per day, with initial production coming primarily from light crude oil reserves. This milestone enhances CNOOC’s ability to meet domestic energy demand and supports long-term production targets set for the decade. The project’s development involved extensive drilling campaigns across multiple wells and the deployment of advanced subsea infrastructure, including an integrated production system linked to a floating production storage and offloading (FPSO) vessel. Engineering and construction were executed under tight timelines, with commissioning completed ahead of schedule. The Xijiang 24 Block is located approximately 250 kilometers southeast of Guangzhou, in a region rich in hydrocarbon potential. This new production capacity adds to CNOOC’s growing portfolio of deepwater assets, reinforcing its position as a leading offshore producer in China. Over the past five years, CNOOC has increased its offshore output by more than 15%, driven by investments in digital monitoring systems, automated well control, and environmental safeguards. The Xijiang 24 Block is also expected to reduce reliance on imported crude by bolstering self-sufficiency in the region. Market analysts note that while the addition of 100,000 bpd is modest in the context of global supply—equivalent to roughly 0.1% of daily world production—it reflects steady progress by Chinese state-owned energy firms amid rising scrutiny over ESG performance and export controls. Investors in CNOOC (ticker: 0883.HK; 3099.HK) have responded positively, with shares rising slightly in early trading following the announcement.