Two major unveiling ceremonies in 10 hours! PetroChina has finally addressed its biggest weakness.
2026-05-11
Recently, CNOOC Offshore Engineering has held two significant unveiling ceremonies, further deepening its cooperation with China University of Petroleum (East China) and China University of Petroleum (Beijing), respectively. In less than ten hours, two unveiling ceremonies were held—one at a university in the south and one at a university in the north—marking the launch of an academician‑led initiative and an innovation center.
On the morning of April 28, Liu Xiquan, Executive Director of COOEC Offshore Engineering, presented an appointment letter to Academician Sun Jinsheng of the Chinese Academy of Engineering and jointly unveiled the plaque. Academician Sun Jinsheng The Marine Energy Engineering Innovation Studio Has Been Established . Academician Sun Jinsheng is from China Oil and gas drilling engineering field Leading experts attended the event. Leaders, experts, and professors from the Engineering Technology Research Institute and China University of Petroleum (East China) were invited to participate. On the afternoon of April 28, CNOOC Offshore Engineering Co., Ltd. held the unveiling ceremony for the Deepwater Engineering Technology Innovation Center in Beijing. Liu Xuquan, Executive Director and Party Secretary of CNOOC Offshore Engineering, and Jin Yan, President of China University of Petroleum (Beijing), signed a joint‑construction agreement on behalf of their respective organizations and jointly unveiled the center.
Could it be that PetroChina is finally set to formally address its “deepwater” capability gap?
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More than 60%—offshore production has become the main driver of domestic oil output.
In 2024, more than 60% of China’s incremental crude oil production came from offshore sources, making the offshore sector the primary driver of the country’s oil output growth. Just five years earlier, this share was still below 40%, and the trend is clear: according to data from the National Energy Administration, over the next five years, more than 80% of the nation’s newly proven reserves will originate in deepwater areas. Yet PetroChina’s deepwater capabilities remain far behind in this landscape. In terms of reserves, CNOOC’s large deepwater gas fields in the South China Sea—most notably the “Deepsea No. 1” field—have long since entered commercial production. Technologically, CNOOC has achieved a world‑first breakthrough by developing a trillion‑cubic‑meter gas field in ultra‑deepwater, ultra‑shallow formations, and its core equipment for deepwater drilling has now been fully localized. As for operating water depths, CNOOC has already reached 3,000 meters, while CNOOC Offshore Engineering’s current deepwater drilling capability tops out at 1,500 meters—half as much.
CNOOC Engineering began in shallow-water offshore operations. When it was founded in 2004, it operated just one jack-up rig; by the end of 2025, that number had grown to 16 drilling rigs, with cumulative drilling footage exceeding 4 million meters. However, its operational water depth has long been capped at 1,500 meters. While this capability suffices in the Bohai Sea and parts of the East China Sea, it falls short in the deep waters of the South China Sea.
In 2025, CNOOC Offshore Engineering achieved its highest-ever operating revenue, with the value of overseas project awards quadrupling year over year, and successful deployments in multiple markets including Indonesia, Brazil, and Qatar. However, these international initiatives are largely concentrated in engineering services and equipment manufacturing, leaving very few opportunities to secure equity stakes in deepwater assets. CNOOC Offshore Engineering has delivered the P79 FPSO flare boom in Brazil, but that was a turnkey project, not an asset under equity ownership. In short, among PetroChina’s offshore oil and gas portfolio, the deepwater segment remains its weakest link.
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Why does PetroChina now have to make up for its shortcomings in deepwater operations?
1. CNOOC has already established a first-mover advantage in the deep waters of the South China Sea. The second phase of the “Deep Sea No. 1” project, scheduled to come on stream in 2025, will produce several billion cubic meters of natural gas annually. If PetroChina fails to bolster its deepwater capabilities, the gap among the “Three Big Oil Companies” will widen further. CNOOC Offshore Engineering’s establishment of a deepwater engineering technology innovation center and its recruitment of Academician Sun Jinsheng are both aimed at addressing the technological generational divide.
2. Global offshore exploration and development are accelerating their shift from shallow-water areas to deepwater regions. According to the International Energy Agency, deepwater resources now account for a steadily growing share of global offshore oil and natural gas reserves, with offshore discoveries accounting for more than 70% of new finds. Brazil’s pre-salt deepwater plays, Guyana’s deepwater blocks, and Africa’s deepwater basins each represent multi‑billion‑dollar opportunities.
Over the past few years, CNPC’s operations in Central Asia, Russia, and Africa have been concentrated on onshore projects. To carve out a share in the deepwater sector, it must possess both proprietary technological capabilities and robust operational expertise. By 2025, CNOOC Offshore Engineering’s overseas contract awards had quadrupled year over year, yet these were largely limited to engineering services. To secure equity stakes in deepwater assets going forward, the company can no longer rely solely on “hard work”; it must leverage “technology and standards.” Another, more fundamental reason lies in achieving independent control over deep-sea technologies. In October 2025, CNOOC Offshore Engineering successfully deployed its independently developed automated dynamic well‑control system aboard the drilling vessel “Dream,” marking the first domestic substitution of core equipment for deepwater drilling. For decades, such dynamic well‑control systems had been under the technological monopoly of Western firms; CNOOC’s solution achieves density‑error control below 0.01 g/cm³ and reduces response time to just 15 seconds. However, having a well‑control system alone is not enough.
Deepwater drilling involves the riser system, subsea wellhead, Deepwater well control More than a dozen core technologies—each one demands sustained, long-term investment. What COOEC can sustain is its strong backing from the China National Petroleum Corporation: with R&D intensity maintained at over 3.4%, it plans to undertake 55 research projects at various levels and file 99 patent applications by 2025. Such a scale of investment is simply beyond the reach of most marine engineering firms.
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What kind of impact will there be once the industry–university–research collaboration chain is fully integrated?
A wall separates the frontline practical experience of engineering from the research capabilities of universities.
The Deep-Water Engineering Technology Innovation Center aims to break down this barrier. China University of Petroleum (Beijing) has long-standing research expertise in areas such as deepwater drilling and subsea production systems, while COOEC possesses 16 drilling rigs and real-world operational data from projects conducted at water depths of up to 1,500 meters. The center’s mission is to translate laboratory‑based findings into field‑tested applications offshore, and then bring back on‑site challenges for further laboratory investigation.
The role of Academician Sun Jinsheng’s studio has become more focused. Academician Sun Jinsheng is a leading authority in the field of oil and gas drilling engineering. By focusing his research on offshore energy engineering, he has positioned COOEC to advance technological breakthroughs on a higher academic platform.
In terms of its overseas strategy, COOEC’s objectives are crystal clear. At the conclusion of its 14th Five-Year Plan in December 2025, the company stated that, beginning in 2026, it will remain firmly focused on its core businesses—wellbore engineering and offshore engineering—while deepening its presence in the domestic market and expanding international cooperation. However, relying solely on engineering services would limit both profit margins and return on assets. By leveraging the platform of its Technology Innovation Center to gradually acquire independent design and manufacturing capabilities for deepwater core equipment, the company would significantly enhance its prospects of securing equity‑based interests in future deepwater projects abroad. For COOEC, these two collaborations mark a turning point: PetroChina is indeed making serious preparations, positioning itself at the long‑absent “deepwater” table.
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