Two men pass the headquarters of China National Offshore Oil Corp, the country's largest offshore oil company, in Beijing. The company said its annual oil and gas production has reached 50 million tons this year for the first time. [China Daily]
China National Offshore Oil Corp (CNOOC), the country's largest offshore oil company, said its annual oil and gas production reached 50 million tons this year for the first time.
That 50 million tons - equal to the peak annual production capacity of Daqing, the largest oil base in China - included 9 billion cubic meters of natural gas.
In 2009, the oil major's offshore production was 47.66 million tons.
Meanwhile, China is trying to build another offshore rig with a production capacity of 50 million tons in the 12th Five-Year Plan (2011-2015).
Chen Weidong, chief energy researcher of CNOOC, told an energy forum in November that deepwater development has become more important due to the growing demand for oil, while the capability of drilling for onshore oil and oil in shallow waters is reaching its limit.
"The South China and East China seas are two potential areas for offshore oil exploration and they will play big roles in the country's energy supplies and security," said Zhou Dadi, former president of the energy research institute of the National Development and Reform Commission.
CNOOC announced a deepwater gas discovery on Dec 15 on Block 64/11 in the Qingdongnan Basin in the South China Sea, approximately 130 km offshore and at a depth of 1,338 meters.
According to Chen, offshore oil accounts for up to 33 percent of global oil production, a figure that will increase to 35 percent in 2020.
In 2007, deep-sea oil production accounted for 6 percent of global production. This will grow to 10 percent in 2012.
Zhou said that Chinese offshore oil production has increased in the past 10 years, and makes a major contribution to the country's energy security. Deep-sea exploration will continue to be a major domestic energy resource in the future.
China produced 190 million tons of oil, and imported 207 million tons, in the first 11 months of this year.
Zhou added that even though China's deep-sea exploration technology still lags behind international standards, it is not a huge obstacle.
Fu Chengyu, general manager of CNOOC, told Xinhua News Agency earlier that there will be large-scale oil exploration in the South China Sea in the near future.
The company has invested 15 billion yuan ($2.25 billion) in deepwater exploration equipment, most of which will be operational in 2011.
According to the company, its most advanced offshore drilling platform can be run at a depth of 3,000 meters and the maximum drilling depth is 10,000 meters.
According a report by the energy & resources unit at Deloitte's, called The Oil and Gas Reality Check 2011, as many nations struggle to boost their domestic supplies of oil and gas, they are likely to give the go-ahead for more deepwater exploration and production.
