China’s CNOOC Ltd. has tapped commercial flows of oil and gas from a shale exploration well in the South China Sea, marking the first successfully drilled shale oil well offshore China, state media reported on July 28.
Exploration well Weiye-1, sunk at the southwestern trough of Beibuwan Basin in South China Sea, tested daily production of 20 cubic meters (126 barrels) of oil and 1,589 cubic meters of natural gas, Shanghai Securities Journal reported.
The whole Beibuwan basin could hold about 1.2 billion tonnes of prospective shale oil resource, the report added.
CNOOC’s press department did not immediately respond to a request for comment.
Under a central government call to boost domestic energy supply security, national oil companies are making greater efforts to tap shale deposits despite their geological challenges and higher cost.
By late 2021 China produced only 35,000 bbl/d of shale oil—extracted from shale rocks and is more complex and expensive to produce than conventional crude—mostly in onshore northern Ordos basin and northwestern Jungar Basin.
That equates to less than 1% of its total oil output.
Recommended Reading
Seatrium Awarded Contract for FPSO Bound for Guyana’s Stabroek
2024-05-17 - The topsides fabrication and integration contract will be for the FPSO Jaguar, bound for the Whiptail Field in the Stabroek block offshore Guyana for Exxon Mobil.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.
BPX Looks to Ramp US Production Over 60% by 2030
2024-05-16 - BPX Energy is looking to boost its U.S. production over 60% by 2030 as it considers bringing online a fourth processing facility in the Permian by mid-year 2025, Clark Edwards, the company’s vice president of development, said during SUPER DUG in Fort Worth.
Empire Petroleum’s Williston Drilling Program Identifies New Zones
2024-05-16 - Empire Petroleum provided updates on its Williston Basin development drilling program in its first quarter 2024 earnings results.