China National Offshore Oil (CNOOC), the leading oil company in China, has commenced production at two of its oil fields in Pearl River Mouth Basin of South China Sea.

The company s new wells include Panyu 4-2/5-1 oil field adjustment project and Liuhua 4-1 oil field. The company had developed Panyu 4-2/5-1 oil field with an average water depth of nearly 100m to utilize the existing facilities and better develop the oil field. The adjustment project is likely to reach its peak production in 2014. CNOOC holds 75.5% stake in Panyu 4-2/5-1 oil field and is the operator. Burlington Resources China owns remaining 24.5% stake in the oil field.

CNOOC built a new subsea production system and is sharing the present nearby facilities to develop Liuhua 4-1 oil field with an average water depth of nearly 268m. Liuhua 4-1 oil field is likely to reach its peak production in 2013. CNOOC owns 100% stake in the Liuhua 4-1 oil field and is the operator.