CNOOC Commences Production at Jinzhou 23-2 Oilfield

CNOOC Limited has announced the commencement of production at its Jinzhou 23-2 Oilfield Development Project. This significant milestone marks a key step in the company’s efforts to strengthen China’s energy security.

The project, located in the Bohai Sea, is expected to reach peak production of approximately 17,000 barrels of oil equivalent per day in 2027. The oilfield, characterized by heavy crude oil, will utilize advanced steam stimulation and chemical auxiliary steam flooding techniques to improve oil recovery rates.

“It is important that we implement strategically planned, well-designed projects with meaningful positive impacts,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “This facility will ensure that ADB-financed projects respond to the needs of the country and improve access to public services for poor and vulnerable households.”

The development involves the construction of two new central processing platforms and the drilling of 67 wells, including 65 production wells and 2 water injection wells.

“The SEFF is an innovative modality as it enables flexibility in project preparation, pilot testing, and capacity development,” said ADB Economist and project co-team leader Jules Hugot. “The project will help pilot-test advanced technologies and innovative project financing and implementation approaches to help reduce project life-cycle costs, improve service efficiency and quality, and minimize negative environmental and social impacts”.

This project represents a major breakthrough in China’s offshore oil and gas industry, particularly in the development of heavy oil resources. It is anticipated to contribute significantly to the energy supply of the Beijing-Tianjin-Hebei region.