CNOOC begins gas production at new South China Sea block

China's CNOOC has begun producing gas from a new block in the Dongfang 1-1 field in the South China Sea, it said on Tuesday.

The 13-3 block, located in the Yinggehai basin with average water depth of 67 metres, is the first high-temperature, high-pressure, low-permeability natural gas project offshore China, CNOOC said in a statement.

Its main production facility is a new unmanned wellhead platform and it utilises the existing processing facilities of the Dongfang gas fields for development.

With a total of six development wells planned for commissioning, the project is slated to reach a peak daily output of about 35 million cubic feet (991,089 cubic metres) in 2026.

The existing facilities connect the Dongfang 1-1 gas field and Dongfang 13-2 gas field, creating an integrated offshore production network in the Yinggehai Basin, supplying gas to the southern Chinese provinces of Guangdong and Hainan, as well as Hong Kong.

CNOOC holds 100 per cent interest and is the operator.

(Reporting by Chen Aizhu)