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CNOOC Ltd announces “significant”

South China Sea discovery

PROJECTS & STATE-RUN CNOOC Ltd has announced a
COMPANIES “significant” shallow-water crude and conden-
sate discovery in the eastern South China Sea.
The company said Huizhou 26-6 was
expected to become the first mid- to large-sized
oil and gas field in the shallow water area of Pearl
River Mouth Basin.
The structure is located in the Huizhou Sag
in the basin’s Zhu1 Depression in water depths
averaging 113 metres. The discovery well HZ26-
6-1, which was drilled and completed to a
depth of 4,276 metres, encountered oil and gas
pay zones with a total thickness of around 422
metres. The well test flowed 2,020 barrels per
day (bpd) of oil and 15.36mn cubic feet (435,000
cubic metres) per day of gas.
CNOOC Ltd said Huizhou 26-6’s successful
exploration was the first time it had achieved
commercial and highly productive oil and gas
flows in buried hill exploration in the eastern
South China Sea. It added that it marked a sig-
nificant exploration breakthrough in the basin’s
Paleogene and buried hill complex reservoir and 33-1S oilfield phase I project, which is located in
proved the field’s “huge exploration potential”. central and western Bohai in water depths aver-
CNOOC Ltd is focusing its resources on aging 21 metres.
domestic upstream projects during the oil The company said one wellhead platform had
price crunch in order to boost China’s energy been built in addition to the project using exist-
security. The central government issued an ing facilities of the Qinhuangdao 33-1 and Qin-
edict to the state majors in 2018 to raise oil huangdao 32-6 oilfields. A total of 13 producing
and gas production to help slow the country’s wells are planned, including nine production
increasing dependence on foreign supplies of wells and four water injection wells.
hydrocarbons. The project is anticipated to reach peak
The company said in early June that it had production, projected at around 6,000 bpd of
commenced production at the Qinhuangdao oil, in 2021.™

OCEANIA

Jemena urges Australia

to back hydrogen

POLICY AUSTRALIAN natural gas utility Jemena has verified and accredited zero emission gas.
called on the government to put hydrogen front “There is a ready market for renewable gas
and centre of the national energy strategy. and we are confident that through raising aware-
Responding to the government’s Technology ness, unlocking seed funding and incentivising
Investment Roadmap (TIR), Jemena executive market-scale projects, Australia can transition to
general manager of gas distribution Jennifer a lower-carbon future,” Purdie said.
Purdie said on June 27 that it was “time to chal- The company said its News South Wales gas
lenge the notion that customers can only access network could be repurposed to sell zero-carbon
renewable energy through the electricity grid”. gases, arguing that this would be a cheaper solu-
Jemena has called for a national certification tion than adapting the electricity grid to handle
programme that will allow consumers to buy the same load.

Week 26 02•July•2020 www. NEWSBASE .com P9