On December 14, China’s state-owned oil and gas firm China National Offshore Oil Corporation (CNOOC) announced that with the final production well on Asia’s deepest water jack-up platform, Haiji-2, now operational, China’s first deepwater oilfield—the Liuhua oilfield secondary development project—has achieved full production. This marks a major breakthrough for China in the development of complex deepwater reservoirs.
The Liuhua Oilfield is China’s first deepwater oilfield and also the country’s offshore reef limestone oilfield with the largest proven geological reserves. Since production commenced in 1996, the oilfield has cumulatively produced over 20 million tons of crude oil, yet 140 million tons of crude oil reserves remain buried deep within the seabed strata.
The Liuhua Oilfield Secondary Development Project, located in China’s Pearl River Mouth Basin, comprises the Liuhua 11-1 and 4-1 oilfields. With an average water depth of approximately 305 meters, the project involves the planned production of 32 wells. Since the first wells commenced operations last September, daily crude oil production has climbed to 3,900 tons, setting a new production record and exceeding development expectations.
According to Dai Ling, Chief Engineer of the Liuhua Oilfield at CNOOC Shenzhen Branch, controlling water intake and stabilizing oil production while enhancing recovery rates are pivotal to the oilfield’s secondary development. CNOOC has pioneered an offshore reef limestone technology system for oil stabilization and water control, achieving a significant reduction in the comprehensive water cut of development wells compared to design specifications. This advancement has substantially boosted the oilfield’s recoverable reserves and recovery rates, extending its operational lifespan by 30 years.
Jiang Junda, General Manager of the Liuhua Oilfield at CNOOC Shenzhen Branch, stated that the current production and operational outcomes of the Liuhua Oilfield’s secondary development project fully validate the stability and reliability of the oil stabilization and water control technology for offshore reef limestone oilfields. It also demonstrates the economic efficiency of the “deepwater jack-up platform + cylindrical FPSO (Floating Production Storage and Offloading unit)”development model. This provides a viable solution for China’s large-scale, profitable development of similar deepwater oil and gas resources during the 15th Five-Year Plan period.