China National Offshore Oil Corporation (CNOOC) has commenced production from Caofeidian 11-1/11-6 oilfield comprehensive adjustment project located in the Bohai Sea, offshore China.

Located in an average water depth of 20m to 25m, the Caofeidian 11-1/11-6 oilfield comprehensive adjustment project comprises two central processing platforms.

The project utilises the existing facilities in Caofeidian oilfield, which includes six wellhead platforms and one floating production storage and offloading (FPSO).

In 2021, the project will have a peak production capacity of approximately 28,700 barrels of crude oil per day. Of the total 89 wells planned for production, 12 wells are currently in production phase.

CNOOC operates the Caofeidian 11-1/ 11-6 oilfields with majority stake

CNOOC operates Caofeidian 11-1 oilfield and Caofeidian 11-6 oilfield with 51% stake and 60% interest respectively.

Brightoil Petroleum owns 40.09% interest and 29.18% stakes in Caofeidian 11-1 and Caofeidian 11-6 oilfields respectively while SPC E&P (China) owns the remaining interest in the fields.

Earlier this year, CNOOC has announced plans to spend between CNY70bn to CNY80bn ($10.3bn to $11.8bn) on exploration and production, as part of its business strategy and development plan for this year.

For this year, the company is targeting net production of 480 million to 490 million barrels of oil equivalent (Mboe), and expects net production to be 505Mboe to 515Mboe in 2020.

Commenting on the move, CNOOC CFO Xie Weizhi earlier said: “The company will maintain its prudent financial policy and investment decision-making, and ensure the effective implementation of the capital expenditure plan to improve the overall performance of the company.”

Recently, CNOOC has signed an agreement to acquire a 10% stake in Arctic LNG 2, the holding company of the $25.5bn (£20.09bn) Arctic LNG 2 project in Russia, from Novatek for an undisclosed price.

The share purchase agreement has been signed by CNOOC and its subsidiary CEPR with Novatek and its subsidiary Ekropromstroy.