In a significant development, the China National Offshore Oil Corporation (CNOOC) has found a substantial discovery in the energy-rich waters of the South China Sea. The oil field, estimated at 100 million tonnes, is situated in the Pearl River Basin near Guangdong Province, as revealed in a recent press release by the state-owned CNOOC.
This discovery holds immense strategic importance for China, which is the world’s largest net importer and second-largest consumer of oil. As China aims to enhance its energy independence and assert its influence in the region, the find in the Kaiping South oilfield signifies a substantial step forward.
Nature of the discovery
The oil found in the Kaiping South oilfield is classified as light crude, a highly desirable variant that yields a greater proportion of gasoline and diesel upon refinement.
The newly established well is projected to yield a remarkable daily output of 7,680 barrels of light crude oil alongside 520,000 cubic feet of natural gas, indicating significant potential for resource exploitation.
Xu Changgui, Deputy Chief Exploration Officer at CNOOC, called the discovery as groundbreaking, saying it has implications for future exploration endeavours in the deep-water regions of the South China Sea. This find augments the resource base for CNOOC’s sustainable development initiatives.
CEO Zhou Xinhuai stressed on CNOOC’s commitment to exploring and developing the energy resources of the South China Sea.
The South China Sea, a vital conduit for global trade, contains major reserves of oil and natural gas, estimated by the US Energy Information Agency. However, overlapping territorial claims among neighbouring countries have engendered friction and periodic confrontations.
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China’s expansive claims in the South China Sea have led to confrontations with neighbouring states, notably Vietnam and the Philippines. Incidents such as the 2014 standoff between CNOOC and Vietnam over oil exploration exemplify the volatility of the region.
Recent clashes between the Chinese coast guard and Philippine vessels underscore the heightened tensions in the region.
(With inputs from agencies)
