In China, we conduct oil and gas exploration and development primarily through independent operations and cooperation projects.
Independent operations: We have been increasing our reserves and production mainly through independent exploration and exploitation. As of the end of 2024, approximately 88.7% of our net proved reserves and approximately 85.1% of net production in China were from our self-operated oil and gas fields.
Cooperation projects: We cooperate with partners through product sharing contracts (“PSCs”) in oil and gas resources (including crude oil and natural gas) exploitation. China National Offshore Oil Corporation (“CNOOC Group”), our controlling shareholder, has the exclusive right to enter into PSCs with foreign contractors to cooperate in the exploration, exploitation and production of oil and gas resources in offshore China where acreage is open to foreign cooperation. CNOOC Group has transferred to the Company all its rights and obligations under the existing and future PSCs (except those rights and obligations related to the management and supervision that should be implemented by a State Corporation).
Bohai
Bohai is the largest crude oil production site in China and also the most important crude oil producing area for the Company. The crude oil produced in this region is mainly heavy oil. The operational area in Bohai is mainly shallow water with a depth of approximately 10 to 30 meters. As of the end of 2024, the net proved reserves in Bohai reached 2.24 billion BOE, representing approximately 30.8% of the Company’s total reserves. In 2024, the oil and gas net production reached 653,000 BOE/day, representing approximately 32.9% of the Company’s production.
With rich oil and gas resources, Bohai is one of the Company’s core areas for exploration and exploitation. In 2024, the Company made five discoveries in Bohai, and successfully appraised fifteen oil and gas bearing structures. Among these, the discovery of Qinhuangdao 29-6 demonstrated promising exploration prospects in the shallow lithologic area of Bohai. Additionally, the discovery of Longkou 7-1 represents a major breakthrough in the Mesozoic buried hill area, setting a new record of the highest tested natural gas production capacity in Bohai oilfields.
In terms of development and production, Bozhong 19-6 Gas Field 13-2 Block 5 Well Site Development Project, Suizhong 36-1/Luda 5-2 Oilfield Secondary Adjustment Development Project, Suizhong 36-2 Oilfield 36-2 Block Development Project and Bozhong 19-2 Oilfield Development Project were put into production in 2024. Among these, Bozhong 19-2 Oilfield Development Project was built upon Bozhong 19-6 100-billion-cubic-meter gas field and onshore power platform, forming a “five-star cluster” of oil and gas production under the “oilfield + gas field + onshore power” model, which created a diversified oil and gas supply model and further enhanced the production capacity in Bohai.
In 2024, the Company completed onshore power project for Bohai oilfields, driving the green and low-carbon transformation of oil and gas production, and established the worlds largest onshore power application base.
In the future, Bohai will still be one of the main sources of production growth for the Company. Bozhong 26-6 Oilfield Development Project (Phase I) has come on stream in February 2025, and other projects including Kenli 10-2 Oilfields Development Project (Phase I) will also be put into production in 2025.
Western South China Sea
Western South China Sea is one of the Company’s important crude oil and natural gas production areas, with the typical operating water depth ranging from 40 to 1,500 meters, and the crude oil produced is mostly light or medium. As of the end of 2024, the proved reserves in Western South China Sea reached 0.91 billion BOE, representing approximately 12.5% of the Company’s total reserves. In 2024, the oil and gas production reached 217,000 BOE/day, representing approximately 10.9% of the Company’s production.
In 2024, the Company made three new discoveries in the Western South China Sea and successfully appraised eight oil and gas bearing structures. The Company created the ultra deep-water ultra-shallow hydrocarbon enrichment theory and discovered Lingshui 36-1, the world’s first ultra deep-water and ultra-shallow layer gas field with reserves of 100 billion cubic meters in Qiongdongnan Basin, promoting the realisation of one-trillion-cubic-meter gas region in the South China Sea. Additionally, the Company made a major breakthrough in the deep natural gas exploration of the Pearl River Mouth Basin with the discovery of Wenchang 10-3 East Gas Field, opening up a new frontier for natural gas exploration in Wenchang Sag of the Pearl River Mouth Basin.
In 2024, Wushi 23-5 Oilfields Development Project and Shenhai-1 Phase II Natural Gas Development Project were successfully put into production. In 2025, other projects including Weizhou 11-4 Oilfield Adjustment and Development Project of Enclosed Area will be put into production.
Eastern South China Sea
Eastern South China Sea is another important crude oil and natural gas producing area of the Company, with the typical operating water depth ranging from 100 to 1,500 meters, and the crude oil produced is mostly light or medium. As of the end of 2024, the proved reserves in Eastern South China Sea reached 1.06 billion BOE, representing approximately 14.5% of the Company’s total reserves. In 2024, the oil and gas production reached 379,000 BOE/day, representing approximately 19.1% of the Company’s production.
In 2024, the Company made two new discoveries in Eastern South China Sea, and successfully appraised four oil and gas bearing structures. Among which, we made a breakthrough in the deep layer of the Pearl River Mouth Basin and discovered the largest clastic rock oilfield Huizhou 19-6.
In 2024, Enping 21-4 Oilfield Development Project, Liuhua 11-1/4-1 Oilfield Secondary Development Project, Huizhou 26-6 Oilfield Development Project and Xijiang 30-2 Oilfield Xijiang 30-1 Block Development Project were successfully put into production. In January 2025, Panyu 10/11 Block Joint Development Project was successfully put into production.
East China Sea
The typical operating water depth in the East China Sea region is approximately 90 meters. As of the end of 2024, the proved reserves in the East China Sea reached 0.20 billion BOE, representing approximately 2.7% of the Company’s total reserves. In 2024, the oil and gas production reached 45,000 BOE/day, representing approximately 2.2% of the Company’s production.
In 2024, the Company continued to optimize the infill drilling in the East China Sea, and promote the stable production of producing oil fields. Additionally, we accelerated the construction of offshore smart oil and gas fields, and promoted the transformation of unmanned and minimally manned offshore platforms.
Onshore China
We mainly engaged in the exploration, development and production of unconventional natural gas resources onshore China. We have established three major production bases, namely Linxing, Shenfu and Panhe in the eastern edge of the Ordos Basin and the Qinshui Basin. As of the end of 2024, the proved reserves onshore China reached 0.18 billion BOE, representing approximately 2.5% of the Company’s total reserves. In 2024, the oil and gas production reached 53,000 BOE/day, representing approximately 2.7% of the Company’s production.
In 2024, the Company innovated the theory of natural gas enrichment in deep coalbed methane, and proved in-place volume of Shenfu deep-play coalbed methane gas field has accumulated over 200-billion-cubic-meter, demonstrating the promising exploration prospects for deep coalbed methane, and accelerating the construction of the one-trillion-cubic-meter gas region onshare.
In the future, we will continuously promote the coordinated exploration of various gas sources such as deep coalbed methane and tight gas, and steadily push forward the exploration and construction of the onshore trillion-cubic-meter gas regions.
