China has found a major new oilfield in the South China Sea. The discovery was made by the China National Offshore Oil Corporation (CNOOC). According to China’s official news agency, Xinhua, the oilfield holds over 100 million tonnes of proven oil reserves.
This new oilfield, named Huizhou 19-6, lies about 170 kilometers (106 miles) from the coast of Shenzhen. It’s located in waters about 100 meters deep. The area is not in any disputed zone and falls fully within China’s Exclusive Economic Zone, which stretches 200 nautical miles from its coastline.
How Big Is This Discovery?
CNOOC tested the site and got promising results. Test drilling produced around 413 barrels of oil per day. It also brought up about 68,000 cubic meters of natural gas daily.
This makes Huizhou 19-6 a big deal. It’s China’s first large-scale oilfield found in deep to ultra-deep layers of clastic rock. Clastic rocks are formed from bits of older rocks and are tricky to explore, especially deep underwater where pressure and temperature are much higher.
Why Does This Matter for China?
China relies heavily on importing oil. But the country wants to depend less on foreign energy and secure more resources at home. This discovery fits right into that goal.
Even so, experts believe China’s crude oil imports might reach their peak as early as next year. That’s because the demand for fuel—especially for transport—could start to slow down soon. China is the world’s biggest buyer of oil, so even small shifts in demand can have a global impact.
Adapted for www.shiportrade.com
News originally published by Reuters
