First Chinese deepwater rig in South China Sea aims to supply LNG to Greater Bay Area

State-run CNOOC completed deep-sea well in recent days, a challenging operation described as a ‘breakthrough for China’

Once it starts production, LNG from the well will be transported to the company’s terminal in Zhuhai to supply energy to a population of 70 million

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The deepwater rig is located in eastern waters of the South China Sea. Photo: Xinhua

Published: 9:23pm, 13 Apr 2019Updated: 11:36pm, 13 Apr 2019

A controversial offshore drilling platform has started deepwater operations in the South China Sea, which officials said would supply liquefied natural gas to the “Greater Bay Area” in the future.

It is the first Chinese-built deepwater rig, and its first deep-sea well was completed in eastern waters of the South China Sea in recent days, according to a statement by its operator, state-run China National Offshore Oil Corporation (CNOOC).

The well is 4,660 metres deep, with a true vertical depth – or the distance in a straight line from the surface to the bottom of the borehole – of 2,529 metres.

Han Xiaoping, chief analyst at energy industry website china5e.com, called it a “breakthrough”.

“This is a breakthrough for China, because it was very challenging for CNOOC to drill a well with such a depth [for the first time],” Han said.

“This is a common drilling operation used by the world’s top offshore drilling companies in the United States, Britain and other Western countries,” he said. “The completion of a deep-sea well like this indicates China is narrowing the gap with these Western countries.”