China’s CNOOC Taps Shale Oil in South China Sea Exploration Well

Under a call by the Chinese companies to boost domestic energy supply security, national oil companies are making greater efforts to tap shale deposits despite their geological challenges and higher cost.

Chen Aizhu, Reuters

China’s CNOOC Ltd. has tapped commercial flows of oil and gas from a shale exploration well in the South China Sea, marking the first successfully drilled shale oil well offshore China, state media reported on July 28.

Exploration well Weiye-1, sunk at the southwestern trough of Beibuwan Basin in South China Sea, tested daily production of 20 cubic meters (126 barrels) of oil and 1,589 cubic meters of natural gas, Shanghai Securities Journal reported.

The whole Beibuwan basin could hold about 1.2 billion tonnes of prospective shale oil resource, the report added.

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