Chinese national oil company CNOOC has commenced production at its 100% owned and operated Luda 5-2 North Oilfield Phase II Development Project in the Bohai Sea, China.
Situated in central Bohai waters with an average depth of 30m, the project includes a newly installed auxiliary platform and a production wellhead platform.
The development plan comprises 29 wells, consisting of 28 production wells and one water source well. Peak output is projected to reach approximately 6,700 barrels of oil equivalent per day by 2026.
According to CNOOC, the reservoir holds heavy crude.
Luda 5-2 North Oilfield was the first offshore site in China to implement thermal recovery methods for super heavy oil. The first phase began operations in 2022, integrating enhanced techniques to improve offshore recovery efficiency.
The second phase aims to maximise extraction through an optimised Jet Pump Injection-Production approach, designed to support efficient and cost-effective heavy crude production.
Earlier this month, CNOOC began production at the Bozhong 26-6 Oilfield Development Project (Phase I), located in central Bohai Bay.
The field, in waters with an average depth of 20m, features a new central processing platform and an unmanned wellhead platform.
The plan includes drilling 33 wells, with 22 designated for production, 10 for gas injection, and one for water sourcing.
Peak production at the first phase of the Bozhong 26-6 Oilfield Development Project is expected to reach approximately 22,300 barrels of oil equivalent per day in 2025. The site contains light crude reserves.
CNOOC claims that the Bozhong 26-6 Oilfield is the world’s largest metamorphic buried hill oilfield, with cumulative confirmed oil and gas reserves exceeding 200 million cubic metres.
In its 2025 business strategy, which was disclosed last month, CNOOC outlined plans to increase daily net production beyond two million barrels of oil equivalent.
The annual target is set between 760 million and 780 million barrels of oil equivalent, with domestic and overseas operations expected to contribute approximately 69% and 31%, respectively.
Future production projections indicate an increase to 780 million–800 million barrels of oil equivalent in 2026 and 810 million–830 million barrels in 2027. For 2024, the company estimated net production at approximately 720 million barrels of oil equivalent, extending a six-year record of continuous output growth.
Capital expenditure for 2025 is forecasted between CNY125bn ($17.2bn) and CNY135bn ($18.6bn), with allocations of 16% for exploration, 61% for development, and 20% for production activities. The company confirmed that 2024 spending remained on track, with total expenditure estimated to reach CNY132bn ($18.2bn).
