Xinhua reports that China's CNOOC has discovered a 100 million-ton oilfield on the South China Sea.

Xinhua reported Monday that the China National Offshore Oil Corporation has discovered an oilfield with reserves of more than 100 million tonnes in the South China Sea.

Huizhou's 19-6 oilfield, recently discovered, is not located in an area of the South China Sea that has been contested. It lies within China’s Exclusive Economic Zone which extends for 200 nautical mile or 370 kilometers from its coast.

The report stated that the oilfield is located approximately 170 km (106 mi) off the coast Shenzhen at an average depth of 100 meters. Test drilling has produced 413 barrels per day of crude oil, and 68,000 cubic metre of natural gas.

The report stated that Huizhou is China's largest integrated clastic petroleum field in deep to ultradeep layers.

These reserves present a challenge for oil and natural gas exploration due to the high temperatures and pressures at these depths.

China is trying to cut its dependence on imported oil to improve its energy security. However, its crude oil imports will peak next year when the demand for transport fuels begins to fall in the world's largest oil consumer. (Reporting and editing by Kim Coghill, Sumana Niandy).

(source: Reuters)