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China National Offshore Oil Corporation (CNOOC) launched production at its Panyu 0-2/5/8 project in the South China Sea.

Panyu 0-2/5/8 is located in the Pearl River Mouth Basin, off China’s southeastern coast.

Panyu 0-2/5/8 includes three oil fields, Panyu 10-2, Panyu 10-5 and Panyu 10-8, and was designed to share some facilities with the Panyu 4-2 oilfield.

The newly constructed main production facilities includes one wellhead platform and nine producing wells.

Currently, there are four wells producing approximately 9,000 barrels per day.

The project is expected to hit its peak production of approximately 13,000 barrels per day in 2015.

CNOOC holds a 100 percent interest in the project.

The U.S Energy Information Association estimates there to be proved and probable reserves of approximately 11 billion barrels of oil and 190 trillion cubic feet of natural gas in the South China Sea.