New ultra-deepwater ultra-shallow field rounds off South China Sea’s trillion-cubic-meter gas region

Chinese state-owned oil and gas giant China National Offshore Oil Corporation (CNOOC) has secured approval of the proved gas in-place of over 100 billion cubic meters at a hydrocarbon discovery said to be the first large-size ultra-shallow gas field in ultra-deepwater in the world, which adds the final touch to the trillion-cubic-meter gas region in the South China Sea.

The Chinese heavyweight explains that the government authorities’ approval of the Lingshui 36-1 gas field in the southern portion of the Central Sag, Qiongdongnan Basin, opens up a new area of exploration in deep waters. Since the average water depth of the gas field is approximately 1,500 meters and the burial depth is 210 meters, CNOOC underlines that this makes the asset a typical ultra-deep-water ultra-shallow gas field.

Xu Changgui, CNOOC’s Chief Geologist, commented: “Ultra-shallow gas reservoirs are important sources of hydrocarbon in deep waters. However, you must overcome world-class challenges to explore and develop the reservoirs. CNOOC Limited has adopted new exploration concepts on the formation mechanism and new technological approaches to tackle the challenges. The successful discovery of Lingshui 36-1 has opened up the new area of exploration for gas resources in ultra-deep-water ultra-shallow plays.”

While the Lingshui 36-1 field has been tested to produce over 10 million cubic meters per day of absolute open-flow natural gas, the firm has spent decades searching for oil and gas resources in the South China Sea, which led to multiple large-size gas fields in Yinggehai, Qiongdongnan, and Pearl River Mouth basins, including Dongfang 1-1, Liwan 3-1, Lingshui 17-2, and Baodao 21-1 along with the latest find.

Zhou Xinhuai, CEO and President of CNOOC, remarked: “The newly discovered ultra-deep-water ultra-shallow gas field is an important composition of the trillion-cubic-meters gas region in the South China Sea. The completion of the trillion-cubic-meters gas region embodies the enormous achievements CNOOC Limited has accomplished in the South China Sea in the past 40 years.

“We have now embarked on a new journey to further expand the resource base of the company. CNOOC Limited is committed to supplying the society with stable clean energy and contributing to the low-carbon development of the economy.”

According to CNOOC, the total proved gas in place in the South China Sea region has exceeded one trillion cubic meters, enabling the trillion-cubic-meter gas region to become a reality. The company recently revealed high yield from a well in Beibu Gulf, encountering a total of 65 meters of oil pay zones.

This came after the company’s first ultra-deep well in Bohai Bay outperformed its set oil and gas target, alongside a new hydrocarbon discovery. The ramp-up in offshore drilling is aligned with the firm’s business strategy and development plan for 2024.

CNOOC is also working on boosting its low-carbon efforts as illustrated by the start-up of the first oilfield in the South China Sea, which is receiving power from shore.