NOOC Ltd., China's largest offshore oil explorer, said Saturday that its Lufeng 13-2 oil field in the South China Sea has begun operation.
The field is located in the Pearl River Estuary basin, which has an average water depth of 132 meters. The project currently has three wells, and the company plans to build five more in order to bring the project's production capacity to 33,000 barrels per day in the second half of 2012, CNOOC said in a statement on its website.
The project's operations will help cut the company's production costs as neighboring oil fields can share production facilities with the Lufeng project, said Chen Bi, CNOOC executive vice president.
CNOOC holds 100-percent stake in the Lufeng project and acts as the operator.