China National Offshore Oil Corporation (CNOOC) announced on December 14, 2025, the full operational launch of the Liuhua Oilfield's secondary development project – a landmark achievement in China's deepwater energy exploration capabilities. Located in the Pearl River Mouth Basin, this reef limestone reservoir now stands as a critical pillar of national energy security.
Since its initial commissioning in 1996, the Liuhua Oilfield has produced over 20 million tonnes of crude oil. With an estimated 140 million tonnes remaining in challenging seabed strata, the $1.4 billion secondary development targets the Liuhua 11-1 and Liuhua 4-1 reservoirs through 32 production wells in 305-meter-deep waters.
The project's first-phase wells, activated in September 2024, have already driven daily output to a record 3,900 tonnes. This technological leap enables extraction from complex geological formations previously considered uneconomical, positioning China among global leaders in deepwater engineering.
Industry analysts note this development could reduce China's crude imports by 2.3% annually while testing next-generation subsea production systems. The breakthrough comes as Asian energy markets face renewed pressure from geopolitical tensions and climate transition demands.
