CNOOC Limited Initiates Production at Kenli 10-2 Oilfields Development Project Phase I

CNOOC Limited Initiates Production at Kenli 10-2 Oilfields Development Project (Phase I)

CNOOC Limited, one of China's leading oil companies, recently announced a significant milestone with the commencement of production at the Kenli 10-2 Oilfields Development Project (Phase I). This development marks the production start-up of the largest shallow lithological oilfield located offshore China, particularly within the Bohai Sea, which is known for its complex geological features.

Overview of the Kenli 10-2 Oilfields

The Kenli 10-2 project is situated in the southern part of the Bohai Sea, featuring an average water depth of approximately 20 meters. This offshore oilfield is significant not only for its size but also for its technological advancements. The project incorporates several new facilities, including a central platform and two wellhead platforms, which efficiently connect to existing nearby infrastructure to maximize production potential.

CNOOC has planned to install 79 development wells in this phase, encompassing a diverse range of recovery methods. This includes 33 cold recovery wells, 24 thermal recovery wells, and 21 water injection wells, along with one water source well to enhance the project's output. The expectation is set to reach a peak production of around 19,400 barrels of oil equivalent per day by 2026, emphasizing the project's potential impact on global oil supply and CNOOC's operational capacity.

Technological Innovations and Methods

Notably, the Kenli 10-2 Oilfield represents the first lithological oilfield discovered in the shallow depression zone of the Bohai Bay Basin, with a proved in-place volume of 100 million tons. This development is strategically executed in phases under a comprehensive approach that combines exploration and developmental efforts. CNOOC has innovatively integrated conventional water injection methods with thermal recovery systems, leveraging steam huff and puff techniques to optimize extraction processes.

The production platform's complexity is underscored by the incorporation of over 240 key pieces of equipment, making it one of the most sophisticated structures in the Bohai region. As the first large-scale thermal recovery platform for heavy oil within the southern Bohai Sea, it signifies a new era in tackling the challenges posed by heavy oil extraction.

Industry Impact

According to Mr. Yan Hongtao, President of CNOOC Limited, the successful start of production at the Kenli 10-2 project not only marks a vital stage in the development of heavy oil reservoirs offshore China but also plays a crucial role in meeting CNOOC's annual production targets. The company aims to achieve a gross annual production target of 40 million tons from the Bohai Oilfield, thereby contributing to its high-quality development goals through enhanced operational efficiencies.

Future Prospects

As CNOOC Limited continues to hold a 100% interest and is the operator of this project, the company is strategically positioned to capitalize on this development. The Kenli 10-2 project is anticipated to set a benchmark for future oilfield developments in terms of both technology integration and production capabilities. The global oil market will be closely observing this project, as its success could influence future investments in offshore oil exploration and production methodologies.

Overall, the Kenli 10-2 Oilfields Development Project not only signifies a major leap for CNOOC Limited but also represents a pivotal contribution to China's energy landscape, with implications that may extend far beyond its immediate operational goals. The combination of innovative engineering, advanced recovery techniques, and strategic foresight positions this project as a noteworthy achievement in the oil and gas industry.