By Shannon Tiezzi
The discovery will provide further impetus for China’s deepwater drilling operations in the South China Sea.
China National Offshore Oil Corp. (CNOOC) has announced its first deepwater gas field discovery in the South China Sea, Xinhua reports. The discovery was made by CNOOC drilling rig HYSY 981, the same drilling platform that sparked a diplomatic spat when it was parked within waters claimed by Vietnam as part of its exclusive economic zone (EEZ).
According to Xinhua, the newly discovered gas field, dubbed Lingshui 17-2, is located 150 kilometers south of Hainan — in other words, not in a disputed area of the South China Sea. The gas field, located at an average depth of 1,500 meters, is classified as an “ultra-deepwater gas field.” Successful exploitation of this gas field would provide a sizable counterpoint to those who doubt CNOOC’s ability to extricate natural gas from deepwater sites. CNOOC representatives told CCTV that China “is now technologically capable of drilling in any place in the entire South China Sea.”
CNOOC is especially pleased with the expected volume of the Lingshui 17-2 gas field. CNOOC manager Xie Yuhong was paraphrased by Xinhua as saying that “the well would produce 56.5 million cubic feet of gas per day, equivalent to about 9,400 barrels of liquid oil per day.” Xie also said the gas field “could be very large,” which Xinhua defined as “generally” meaning “at least 30 billion cubic meters” of gas. The discovery is still awaiting further testing to confirm the estimates.
Read the full story at The Diplomat