LNG News Editor:
China National Offshore Oil Corp., one of China’s main LNG importers, said its newly discovered Bozhong 13-2 oil and natural gas field in the Bohai Sea offshore northeast China could prove to be one of nation’s largest resource basins and will be subject to fast-track development.
CNOOC said the new field was expected to play a key role in helping the company produce 40 million tons of crude from the Bohai oilfield during the 14th Five-Year Plan period of 2021-2025.
“The Bozhong 13-2 structure is located in the southwestern Ring of Bozhong Sag in the Bohai Bay with an average water depth of about 23.2 metres,” explained CNOOC.
“The discovery well BZ13-2-2 was drilled and completed at a depth of 5,223 metres, and encountered oil pay zones with a total thickness of approximately 346 metres,” added CNOOC.
“The well was tested to produce an average of approximately 1,980 barrels of crude oil and 5.25 million cubic feet of natural gas per day,” stated the Chinese major.
“The successful exploration of Bozhong 13-2 structure is another remarkable exploration achievement for the company in oil and gas exploration offshore China,” said Zhou Xinhuai, General Manager of the Exploration Department at CNOOC.
Zhou said the Bohai oil and gas field was likely to start production in 2023 and achieve a peak output of 1.2 million tons of oil equivalent.
The Bohai Sea natural gas and oil finds will boost CNOOC's annual output to above 80 million tons of oil equivalent by 2025.
CNOOC is aiming to produce 30 million tons of domestic crude oil and 3 billion cubic metres of natural gas in 2021.
During the first quarter, the company is starting three major projects including large and medium -sized oilfield developments.
CNOOC is one of the companies underpinning Chinese energy procurement from domestic resources and through imports.
It concentrates on LNG while rival China National Petroleum Corp. specializes in pipeline natural gas imports as well as LNG.
CNOOC currently has capacity at nine of China’s network of 22 LNG import terminals and ports.
CNOOC’s LNG import capacity is held at most of the regasification terminals south of Shanghai, the port city where it has capacity at one facility.
It is additionally a foundation customer at the Royal Dutch Shell-operated Queensland Curtis export plant on Curtis Island in eastern Australia.
China's natural gas imports including pipeline gas and LNG are forecast to rise by 18 percent to 163 billion cubic metres in 2021.
In addition to the current 22 LNG terminals in China that have a total annual receiving capacity of 60 million tonnes per annum, the country plans to complete two more terminals in 2021, Pinghu LNG and Wenzhou LNG, both located in the eastern Zhejiang province.
China confirmed that 2020 liquefied natural gas imports hit a record as energy needs continued to grew even after the slowdown in the first half caused by the Covid-19 pandemic.
Chinese imports totalled 67.13 million tonnes in 2020, an increase of 11.5 percent, according to China's General Administration of Customs.
Shipments during December hit a record monthly high of 7.59MT, up 18.2 percent from the same month a year ago.
The December imports surpassed the previous record of 6.61MT achieved in November 2020.
China’s main LNG suppliers are Australia, Qatar, Malaysia, Indonesia, Russia and the US.