CNOOC Ltd. announced Monday the start of production at two oil development projects offshore China, part of efforts to raise full-year production to up to 660 million barrels of oil equivalent (MMboe).

The bigger of the two, Lufeng 12-3, is expected to reach a peak production of about 29,000 barrels of crude per day next year, the majority state-owned company said in a press release.

"Lufeng 12-3 Oilfield is the largest jointly-developed oilfield in the South China Sea in the past decade", CNOOC said. "It will provide stable energy supply for the Guangdong-Hong Kong-Macao Greater Bay Area and contribute to the high-quality development of local economy".

Located in the eastern South China Sea with an average water depth of 787.4 feet (about 240 meters), the project plans to put 13 wells into production. Lufeng 12-3's main production facilities include one wellhead platform and one newly built 100,000-metric ton intelligent floating production, storage and offloading vessel (FPSO), according to CNOOC.

In the other project, called Bozhong 28-2 South Oilfield Second Adjustment, CNOOC expects a peak production of 7,600 barrels of petroleum a day in 2024. In Bozhong 28-2 CNOOC plans to commission 21 development wells, consisting of 13 production wells and eight water injection wells, according to the news release.

Located in the southern Bohai Sea with an average water depth of 68.9 feet (around 21 meters), the project's main production facilities include one central platform and one water injection subsea pipeline.

CNOOC operates the Bozhong 28-2 South Oilfield Second Adjustment with a 100 percent stake, while SK Earthon Co. Ltd. is the operator of Lufeng 12-3 with a 39.2 percent interest, though CNOOC is the majority shareholder with a 60.8 percent interest.

The two projects are among several CNOOC has planned for this year, during which it aims to produce 650-660 MMboe net. The company plans to meet 70 percent of the target through domestic production and 30 percent through its overseas operation, according to CNOOC's capital budget announcement January 11. "Net production is expected to reach 690 million to 700 million BOE in 2024 and 730 million to 740 million BOE in 2025", the announcement said.

CNOOC has scheduled nine oil and gas projects for startup this year. Besides Bozhong 28-2 and Lufeng 12-3, these include China's Bozhong 19-6 Condensate Gas Field Phase I Development Project and Enping 18-6 Oilfield Development Project, as well as Brazil's Buzios5 Project and Mero2 Project and Guyana's Payara Project, as named in the capital budget announcement.

Earlier Buzios 5 has been put onstream with an initial average daily output of 600,000 barrels, as announced by CNOOC June 1. Five wells drilled in the Brazil project will produce up to 150,000 barrels of oil and 211.89 million cubic feet (six million cubic meters) of gas per day, CNOOC said in the announcement, calling Buzios5 "the largest deep-water pre-salt oilfield in the world".

Buzios5, which sits on the Santos Basin with a water depth of 6,233.6–7,217.85 feet (1,900–2,200 meters), will have an FPSO and a subsea production system, the announcement said.

CNOOC's wholly-owned subsidiary CNOOC Petroleum Brasil Ltda holds a 7.34 percent interest in the Buzios Shared Reservoir, which is operated by Brazil's state-owned Petroleo Brasileiro SA with an 88.99 percent interest. CNODC Brasil Petroleo e Gas Ltda has 3.67 percent.

"Buzios5 is the first project to commence production after CNOOC Limited joins Buzios project, which will inject new momentum into our overseas production growth", CNOOC then-president Xia Qinglong noted in the June announcement.