China Makes Significant Oil Discovery in the South China Sea

China has achieved a historic milestone in its offshore oil exploration endeavors, unveiling a sizable integrated clastic oilfield in the deep to ultra-deep layers of the South China Sea. The Huizhou 19-6 oilfield, located approximately 170 kilometers from Shenzhen, boasts proven reserves that surpass 100 million tons. The China National Offshore Oil Corporation (CNOOC) announced this discovery, which is anticipated to address the limitations of the country's oil and gas resources.

According to the Global Times, industry experts see this accomplishment as crucial for the future of oil production in China. The new oilfield is situated at an average water depth of 100 meters, and early test drilling has resulted in the production of 413 barrels of crude oil and 68,000 cubic meters of natural gas daily. Wang Yamin, a professor at Shandong University's School of Oceanography, elaborated on the favorable geological conditions of the South China Sea that support the formation of such clastic oilfields.

However, the exploration of deep to ultra-deep layers of the ocean presents significant challenges, such as high temperatures and complex geological conditions. Clastic reservoirs, which are vital for hydrocarbon accumulation, often exhibit low permeability, complicating the discovery of substantial oil and gas reserves. Despite these hurdles, advancements in technology and exploration methods in the deep-sea sector are expected to continue to progress, bolstered by this discovery.

CNOOC's CEO, Zhou Xinhuai, indicated that the recent discoveries in the eastern South China Sea are part of a trend that has seen multiple major oilfields with reserves over 100 million tons discovered in consecutive years. Furthermore, insights from a report released by CNOOC in December 2024 revealed that China's offshore oil and gas production achieved record levels, highlighting significant technological advancements in deepwater exploration and extraction. With the world's newly discovered oil and gas reserves largely originating from deeper layers, this sector is poised to be a key driver for future growth in China's energy landscape.