China National Offshore Oil Corporation, or CNOOC Group, confirmed that it has discovered a new oil reserve in the rich oil field in the north of the Laizhou area in Bohai Bay. The company's newly discovered reserve in the Kenli 6-1 oilfield is estimated to have more than 100 million tons of crude oil.
CNOOC mentioned in a statement on Tuesday that the successful exploration of oilfield Kenli 6-1 is a demonstration of the advances in its exploration capabilities and its increasing role in bolstering the oil production in China's eastern regions. Experts have pointed out that the discovery of the massive oil reserve should help in the effort to reduce the country's reliance on foreign oil and bolster its energy security.
The Beijing-based oil firm, the third-largest national oil company in China, has been exploring the Kenli 6-1 oilfield for more than four decades. However, previous discoveries only involved small scale and scattered reserves. In the last two years, more than 42 wells have been drilled in the oilfield. CNOOC estimates that the total reserves yet to be discovered in the large 100 square kilometer field could have enough oil to power a million vehicles for the next 20 years.
The company's chairman, Wang Dongjin, stated that the discovery of the massive oil reserve in the Kenli 6-1 oilfield is a major accomplishment for China's wider oil and gas sector. He added that the major milestone has encouraged the company to further push for more breakthroughs in advanced oil exploration to strengthen the country's national energy security.
As of the moment, China's dependency on foreign oil still remains high. According to the figures published by the General Administration of Customs, the country's dependence rate hit a high of 72.4 percent last year. China imported more than 500 million tons of crude oil last year, a 9.5 percent increase when compared to the previous year.
The discovery of the massive reserves comes as the country's oil sector continues to suffer from the global oil price collapse. Industry experts point out that the added reserves will go a long way in ensuring the resilience of the country's oil industry moving forward.
Chinese oil firms have managed to fare better when compared to other major players across the globe, with most reporting relatively lower expenditure reductions. Other companies have not fared as well, with some even filing for bankruptcy amid the prevailing low oil price and the economic downturn caused by the coronavirus pandemic.
