A Chinese oil major is investing heavily in the UK’s Buzzard fields and a South China Seas rig.
China National Offshore Oil Corp (CNOOC) has announced a plan to refurbish equipment and infrastructure at Britain’s broken benchmark oilfield, Buzzard, whilst finishing off repairs to its own $1bn deepsea drilling rig, Offshore Oil 981.
An active Buzzard field rig Image: Nexen |
The oil giant, which now owns a large share of the Buzzard oil fields through its acquisition of Canada’s Nexen Inc, plans to upgrade the accident-prone oilfields. At least six Buzzard blocks were shut down in 2012 and one in 2013.
Although Buzzard only produces around 200,000b/d, less than 0.25% of daily world supply, it is still the largest contributor to the Forties crude blend, the most important of the North Sea crude grades underpinning the Brent benchmark.
China’s largest offshore oil and gas producer announced in a statement that it “fully expects to increase production from the UK North Sea assets,” although “detailed operational matters have not been finalised.”
Closer to home, the company’s South China Sea deepsea rig has returned to normal operations after “minor leaks” were found in a water pump room during routine checks. The company did not give any further details about the faults.