CNOOC Brings New Xijiang Offshore Project Online in South China Sea

CNOOC Limited has commenced production from the Xijiang Oilfields 24 Block Development Project, a shallow-water offshore oil development located in the Pearl River Mouth Basin. The project leverages existing infrastructure from the nearby Huixi Oilfields while incorporating a newly installed unmanned wellhead platform, Xijiang 24-7.

The development plan includes 10 production wells and is expected to reach plateau output of around 18,000 barrels of oil equivalent per day by 2026. The field produces light crude oil, aligning with CNOOC’s focus on relatively high-quality barrels in mature offshore basins.

A notable feature of the project is the Xijiang 24-7 platform, described as China’s first unmanned offshore platform equipped for high-temperature fluid cooling and export. The temperature control system is designed to mitigate the effects of elevated fluid temperatures on subsea pipelines, supporting stable long-term production and reducing operational risk.

CNOOC holds a 100% interest in the project and serves as operator.

The start-up underscores CNOOC’s continued emphasis on incremental brownfield-style developments and tie-backs in established offshore provinces, particularly in the Pearl River Mouth Basin. By relying on adjacent infrastructure, the company has been able to shorten development timelines and control capital intensity, a strategy increasingly favored by national oil companies amid cost discipline and volatile oil markets.

The deployment of unmanned platform technology also reflects a broader push by Chinese offshore operators toward automation, digitalization, and lower operating costs. Such systems can reduce personnel exposure offshore while improving production reliability, particularly in mature basins where margins are more sensitive to operating efficiency.

The Xijiang project comes as China continues to prioritize domestic oil and gas supply security. Offshore developments remain central to that strategy, especially as onshore output growth becomes more challenging and import dependence remains high.

For CNOOC, the project adds to a steady stream of recent offshore start-ups aimed at underpinning medium-term production targets while integrating new technologies into its upstream portfolio.

By Charles Kennedy for Oilprice.com

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