China's first ultra-deepwater gas field, "Shenhai-1," has produced over 10 billion cubic meters of natural gas and more than one million cubic meters of condensate oil since the project entered operation three years ago, according to data released by China National Offshore Oil Corporation (CNOOC) on Wednesday.
For three consecutive years, the project's annual natural gas production has remained above 3 billion cubic meters.
The "Shenhai-1" gas field, located in the southern part of south China's Hainan Province, is divided into two phases of development.
It operates at a maximum water depth of over 1,500 meters, with well depths exceeding 5,000 meters. The formation temperature reaches up to 138 degree Celsius, and the maximum formation pressure exceeds 69 megapascals, which is 1,000 times the working pressure of a household pressure cooker.
This makes it the deepest, highest-temperature, highest-pressure, and most challenging deep-water gas field for exploration and development that China has independently developed to date. In 2024, the gas field's natural gas output surpassed 3.2 billion cubic meters.
"The Phase II has driven the overall production capacity of 'Shenhai-1' to continue rising. By continuously optimizing process flows, equipment combinations, and improving production management measures, we successfully ensured that Phase I of the 'Shenhai-1' project reached its peak production capacity within just five months of being put into operation," said Song Jinlong, director of the project.
In recent years, with the rapid development of emerging technologies such as artificial intelligence, big data, cloud computing, and the Internet of Things, China's offshore oil and gas exploration and development sector has actively explored digital and intelligent transformation.
As China's first ultra-deepwater intelligent gas field, the construction of "Shenhai-1" marks a significant milestone, positioning China's offshore oil and gas development technology among the world's leading ranks.
Whether it's the field operators offshore or the technical experts at the onshore control center, they can access real-time and accurate information about the latest operational status of "Shenhai-1" through the cloud, enabling remote diagnostics of equipment faults.
"Currently, we have established a comprehensive sea-land communication network for 'Shenhai-1', featuring a cluster of multi-type intelligent monitoring devices that cover both offshore and subsea operations, along with the 'Shenhai Cloud Travel' integrated management platform, which includes the digital twin model of 'Shenhai-1'," said Li Jinsong, general manager of Lingshui-Yacheng Operation Company of CNOOC's Hainan subsidiary.
Natural gas output from deep-water field exceeds 10 billion cubic meters in three years
China will strengthen fiscal and financial coordination to amplify policy effectiveness, experts said as the draft central and local budgets for 2026 were unveiled on Friday at the ongoing fourth session of the 14th National People's Congress.
According to the draft central and local budgets for 2026, 1.3 trillion yuan (190 billion U.S. dollars) of ultra-long special treasury bonds will be issued to provide continued support for the implementation of major national strategies and security capacity-building in key areas and for large-scale equipment upgrades and consumer goods trade-in programs.
Ultra-long special treasury bonds totaling 800 billion yuan will be allocated to support the implementation of major national strategies and security capacity-building in key areas, and 250 billion yuan in ultra-long special treasury bonds will be earmarked for consumer goods trade-in programs.
The country will refine these programs in terms of their scope and subsidy standards, and continue to support the scrapping and replacement of automobiles, home appliance trade-in schemes, and purchases of new digital and smart products.
China will also set up a 100-billion-yuan fiscal-financial coordination fund to boost domestic demand. The fund will support consumption and private investment through loan interest subsidies, financing guarantee, and risk compensation.
"Fiscal and monetary policies are the two major macroeconomic tools for macro-control, and their coordination is crucial. For instance, fiscal funds primarily serve as a guiding role, while financial institutions provide the capital. When fiscal guidance and financial resources are combined, the synergistic effect creates a result greater than the sum of its parts," said Yang Zhiyong, director of the Chinese Academy of Fiscal Sciences.
"By leveraging interest subsidies, we can mobilize substantial credit from financial institutions, thereby naturally stimulating consumption. The Ministry of Finance, in collaboration with the People's Bank of China, has introduced highly innovative measures, such as providing guarantees for the issuance of corporate bonds by small and medium-sized enterprises (SMEs), and compensating investors for losses. I believe the leveraging effect, making minimal efforts for maximum results, will become even more potent," said Yao Dongmin, director of the Center for China Fiscal Development under the Central University of Finance and Economics.
China's top legislature opened its annual session on Thursday morning at the Great Hall of the People in Beijing, with Chinese President Xi Jinping and other Party and state leaders attending the opening meeting alongside more than 2,700 NPC deputies. This year's NPC session is scheduled to run till March 12.
China to strengthen fiscal, financial coordination to amplify policy effectiveness: experts
