CNOOC Launches New Xijiang Offshore Project in the South China Sea

CNOOC Limited has begun production at the Xijiang Oilfields 24 Block Development Project, a shallow-water oil initiative situated in the Pearl River Mouth Basin. This project utilizes existing infrastructure from the nearby Huixi Oilfields while featuring a newly installed unmanned wellhead platform, known as Xijiang 24-7. The development encompasses 10 production wells and aims to achieve a plateau output of approximately 18,000 barrels of oil equivalent per day by 2026. Focusing on high-quality light crude oil, the project aligns with CNOOC’s strategy in mature offshore basins. A key component, the Xijiang 24-7 platform, stands out as China's first unmanned offshore platform designed with advanced high-temperature fluid cooling and export capabilities. This temperature control system is designed to counteract the impact of elevated fluid temperatures on subsea pipelines, ensuring stable long-term production and minimizing operational risks. CNOOC maintains a 100% ownership stake in the project and operates it directly. This initiative highlights CNOOC’s ongoing commitment to progressive brownfield-style developments and tie-backs in established offshore regions, particularly within the Pearl River Mouth Basin. By optimizing nearby infrastructure, the company has successfully shortened development timelines and managed capital intensity—a strategy that has gained traction among national oil companies facing cost constraints and fluctuating oil markets. The introduction of unmanned platform technology also reflects a wider trend among Chinese offshore operators towards automation, digitalization, and cost efficiency. Such innovations can enhance production reliability while decreasing personnel exposure in offshore environments, especially in mature basins where operational efficiency directly impacts profit margins. The Xijiang project emerges as China intensifies its focus on securing domestic oil and gas supplies, with offshore developments playing a crucial role in this strategy, particularly as growth in onshore output becomes more difficult and reliance on imports remains significant. For CNOOC, this project contributes to a continuous stream of recent offshore start-ups that aim to support medium-term production objectives while incorporating new technologies into its upstream operations. By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.com Global Coal Demand Hits All-Time High Phillips 66 Sees Strong Support for Western Gateway Pipeline U.S. Blockade Threatens Venezuela's Crucial Russian Naphtha Supply Oilprice Intelligence brings you insights ahead of mainstream news. Subscribe for expert analysis delivered twice a week, so you're always aware of market movements before they occur. Gain access to geopolitical intelligence, hidden inventory metrics, and market insights that drive billions, and we’ll offer you $389 in premium energy intelligence as a welcome gift for subscribing. Join over 400,000 readers today and gain immediate access by clicking here.