China’s Discovery of the Huizhou 19-6 Oilfield: A Milestone in Energy Security and Geopolitics

On March 31, 2025, the China National Offshore Oil Corporation (CNOOC) announced the discovery of the Huizhou 19-6 oilfield in the eastern South China Sea. This major find, located approximately 170 kilometers off the coast of Shenzhen in Guangdong Province, boasts proven reserves exceeding 100 million tonnes of oil equivalent. As China’s first large-scale integrated clastic oilfield discovered in deep to ultra-deep layers, Huizhou 19-6 represents a significant breakthrough in offshore energy exploration. The discovery underscores China's strategic focus on bolstering its energy security while navigating the complex geopolitics of the South China Sea.

Key Features of the Huizhou 19-6 Oilfield

The Huizhou 19-6 oilfield is situated within China’s Exclusive Economic Zone (EEZ), ensuring that it does not fall within disputed territories. Key characteristics of the oilfield include:

• Location: Approximately 170 kilometers (106 miles) from Shenzhen, at an average water depth of 100 meters.
• Reserves: Proven reserves exceeding 100 million tonnes (750 million barrels equivalent) of oil and gas.
• Production Potential: Initial test drilling has yielded daily outputs of 413 barrels of crude oil and 68,000 cubic meters of natural gas.
• Geology: The field is a clastic reservoir, characterized by deposits formed from geologic debris such as sand, rock fragments, and clay. These reservoirs are typically challenging to explore due to their low permeability and complex geological conditions.

Xu Changgui, CNOOC’s chief geologist, described the discovery as "breaking through traditional theoretical understanding" and demonstrating "enormous exploration potential" in deep and ultra-deep plays.

A Strategic Breakthrough for China’s Energy Security

The discovery of Huizhou 19-6 is a critical step in China’s broader strategy to reduce its dependence on imported energy. As the world’s largest importer of crude oil—receiving approximately 11.1 million barrels per day in 2024—China has long sought to enhance its domestic production capabilities. The significance of this discovery lies in several key areas:

1. Reducing Import Dependency

China's reliance on foreign oil makes it vulnerable to global market fluctuations and geopolitical risks. The Huizhou 19-6 oilfield provides a domestic source of energy that can help offset imports, particularly as demand for transportation fuels is expected to peak next year.

2. Advancing Deep-Sea Exploration

The successful identification and development of Huizhou 19-6 mark a milestone in China's ability to explore deep-sea resources. Deep and ultra-deep layers account for an increasing share of global oil and gas discoveries, with CNOOC noting that over 60% of new reserves worldwide are found at these depths.

3. Supporting Economic Growth

The development of domestic energy resources like Huizhou 19-6 is expected to bolster regional economies, particularly in Guangdong Province, which serves as a hub for China's industrial and technological advancements.

4. Strengthening Energy Independence

By investing in domestic exploration and production capabilities, China aims to enhance its energy independence—a critical component of its broader national security strategy.

Challenges in Developing Deep-Sea Resources

While the discovery is promising, developing deep-sea oilfields like Huizhou 19-6 poses significant technical and logistical challenges: