Massive Discovery in Beibu Bay: A Reserve Producing 102 Tons of Oil and 373,560 Cubic Meters of Natural Gas Daily

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China has made a significant energy discovery in the Beibu Bay (also known as the Gulf of Tonkin), unveiling a vast oil and natural gas deposit buried over 4,800 meters below the surface. This new find could potentially yield up to 102 tons of oil and 373,560 cubic meters of natural gas every day, located roughly 100 kilometers from China’s coastline. This discovery marks an important milestone in the country’s ongoing efforts to secure energy independence and reduce its reliance on imports.

A Long-Awaited Discovery

The newly discovered reserve, named Weizhou 10-5, is the result of years of research and exploration led by the China National Offshore Oil Corporation (CNOOC). The region, well-known to geologists, has seen numerous exploration efforts, but this discovery is particularly significant. So, what makes this find so valuable?

Oil and gas reserves are often hidden within complex geological formations that date back to the Paleozoic era, which are essentially rock labyrinths formed hundreds of millions of years ago. Locating hydrocarbons within these structures is a daunting challenge. CNOOC had to employ advanced technologies to probe these granite formations, akin to searching for a needle in a haystack—except the haystack is miles beneath the earth’s surface, and the needle spans hundreds of meters.

Energy Implications for China

As the world’s largest energy consumer, China has been working diligently to enhance its energy independence. This recent discovery could play a crucial role in helping the country achieve that goal. However, the challenge lies not just in extracting the oil and gas but also in ensuring that the process is environmentally sustainable.

CNOOC has already shown its commitment to carbon capture technologies, such as capturing a portion of the CO2 emissions generated during extraction and reinjecting it underground. This process could help minimize the environmental impact, aligning with China’s long-term strategy to reduce carbon emissions while boosting its energy production.

A Long-Term Strategy

This isn’t the first time that CNOOC has uncovered a significant oil field. In February 2025, the company began production at the Bozhong 26-6 oil field in the Bohai Bay, an ambitious project with a capacity of 22,300 barrels per day. These ongoing efforts demonstrate CNOOC’s focus on securing valuable reserves to fuel China’s energy needs well into the future.

Potential Value of the Beibu Bay Reserve

While the total value of the Beibu Bay reserve has not yet been officially disclosed, we can make an educated estimate based on current market prices for oil and natural gas. Here’s a breakdown of what the reserve could potentially generate on a daily basis:

  • Natural Gas: The average price for natural gas as of March 2025 is approximately €1.36 per cubic meter. With a daily production of 373,560 cubic meters, this translates to €503,200 daily revenue from natural gas alone.
  • Crude Oil: As of March 2025, the price of Brent crude oil stands at €64.53 per barrel. With 102 tons of oil produced daily, and given that one ton equals roughly 7.5 barrels, the total daily production is about 750 barrels. This equates to approximately €48,397.50 per day in oil revenue.

When combined, the daily value of both the natural gas and oil production is around €551,597.50, or more than €200 million annually.

This estimation reflects the tremendous economic potential of the Beibu Bay deposit. The combination of substantial oil and natural gas reserves will undoubtedly make this a critical asset for China’s energy future.

In conclusion, this discovery in Beibu Bay not only promises to boost China’s energy production but also signals a shift toward greater self-sufficiency in the energy sector. With ongoing technological advancements in exploration and carbon management, China is setting itself up for a more sustainable and independent energy future.

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Sarah Jensen

Meet Sarah Jensen, a dynamic 30-year-old American web content writer, whose expertise shines in the realms of entertainment including film, TV series, technology, and logic games. Based in the creative hub of Austin, Texas, Sarah’s passion for all things entertainment and tech is matched only by her skill in conveying that enthusiasm through her writing.