CNOOC drills major natural gas well in ultra-deepwater, Sept 2024

CNOOC Limited has achieved a significant milestone in natural gas exploration by drilling a well in the ultra-deepwater Liwan 4-1 structure, located in the Pearl River Mouth Basin. This well, tested to produce 430,000 cubic meters of natural gas per day, represents the first major breakthrough in exploring carbonate rocks in China's ultra-deep waters. The well was drilled to a vertical depth of nearly 3,000 meters and completed at approximately 4,400 meters, revealing a gas pay zone of around 650 meters in the horizontal section. The discovery is situated in Baiyun Sag, which is recognized as the largest hydrocarbon-rich sag in the region, approximately 300 kilometers southeast of Shenzhen. This area has previously been the focus of exploration efforts primarily targeting clastic rocks. The success of this well indicates the potential of carbonate rocks, which had not been extensively explored before, thus expanding the understanding of the geological formations in the area. Mr. Xu Changgui, the Chief Geologist of CNOOC, emphasized the importance of this discovery, noting that it not only enhances exploration understanding but also improves operational techniques. The proximity of the new well to existing production facilities of the Liwan3-1 gas field suggests that the development of this new discovery could be economically viable and efficient. This breakthrough is expected to significantly advance the natural gas exploration process in the Baiyun Sag, potentially leading to increased production and contributing to energy security in the region. The company remains optimistic about future developments, although it acknowledges the uncertainties inherent in the oil and gas industry.