China National Offshore Oil Corporation (CNOOC) announced that the Liuhua 29-1 gas field has commenced production, according to a press release.

In order to maximize the gas potential in this field, a new subsea wellhead has been built, as well as utilizing the existing production facilities of Liuhua 34-2 gas field and Liwan 3-1 gas field. 

This infrastructure will then be used to drill 7 development wells in total. Peak production is expected to reach approximately 62 million cubic feet (mcm) of natural gas per day by 2022.

The gas field is located in the eastern South China Sea with a water depth varying between 640 to 785 meters. 

CNOOC has a 25% working interest in Liuhua 29-1 gas field and acts as the operator in shallow water, while Husky Oil China Limited holds the remaining 75% working interest and acts as the operator in deep water.