China-based oil company China National Offshore Oil (CNOOC) has announced that two of its oil fields in Pearl River Mouth Basin of South China Sea have successfully started production.

The wells are Panyu 4-2/5-1 oil field adjustment project and Liuhua 4-1 oil field.

CNOOC designed the Panyu 4-2/5-1 oil field with an average water depth of about 100m to use the existing facilities and better develop the oil field.

The adjustment project was expected to hit its peak production in 2014.

CNOOC owns 75.5% stake in the Panyu 4-2/5-1 oil field and is the operator, whereas the remaining 24.5% interest is held by Burlington Resources China.

The company constructed a new subsea production system and is sharing the current surrounding facilities to develop the Liuhua 4-1 oil field with an average water depth of about 268m.

Liuhua 4-1 oil field is expected to hit its peak production in 2013. The company holds 100% interest in the Liuhua 4-1 oil field and is the operator.