CNOOC CCUS Expansion, 10-Million-Ton Hub Project, 100 M m³ Sequestered at Enping 15-1, and 1 Major Project Launch (2025)

CNOOC 1 Offshore Project Launch, CCUS-EOR Model Validation (2025)

In 2025, China National Offshore Oil Corporation (CNOOC) moved from planning to execution by launching China’s first offshore Carbon Capture, Utilization, and Storage (CCUS) project, validating an integrated CCUS-Enhanced Oil Recovery (EOR) model as a financially viable pathway for decarbonization. This strategic pivot connects carbon sequestration directly to revenue-generating oil production, addressing the high-cost barriers that have constrained standalone storage projects. The rapid progression of the Enping 15-1 project from drilling in March 2025 to full operation in May 2025 marks a significant acceleration in China’s deployment of offshore carbon management infrastructure.

The Enping 15-1 Operational Launch

The year 2025 marked a clear shift from conceptual development to tangible operation for CNOOC‘s offshore CCUS ambitions. While the preceding period focused on feasibility and design, 2025 saw the physical implementation and commissioning of the landmark Enping 15-1 project.

• Prior to 2025, China’s CCUS efforts were largely onshore and in pilot stages, with offshore applications remaining theoretical.
• On March 26, 2025, CNOOC initiated drilling for the nation’s first offshore CCUS well, signaling the start of the project’s construction phase.
• The project officially commenced operations on May 22, 2025, demonstrating an accelerated timeline from drilling to commissioning of less than two months.
• By September 12, 2025, the facility had already sequestered over 100 million cubic meters of CO 2, confirming its operational effectiveness and achieving a significant milestone within the first four months of operation.

Validating the CCUS-EOR Model

The core of CNOOC‘s strategy is the dual-purpose application of captured carbon, a model now proven effective by the Enping 15-1 project. This approach provides a direct economic incentive for decarbonization efforts, creating a replicable template for other national and international oil companies.

• The project is designed to capture up to 100, 000 metric tons of CO 2 annually from the oilfield’s production, which is then injected into subsea reservoirs.
• Over a ten-year period, CNOOC plans to inject over one million metric tons of CO 2, which is projected to increase crude oil output by approximately 200, 000 tons.
• This integration of EOR provides a direct financial return that helps offset the high capital and operational costs of CCUS, a model also being explored by companies like Conoco Phillips.
• The success of this model positions CNOOC not just as an oil producer but as a service provider for industrial decarbonization, evidenced by its plans for a larger industrial hub.

China Offshore CCUS, CNOOC’s Pearl River Mouth Basin Focus

CNOOC‘s 2025 activities have firmly centered China’s offshore CCUS ambitions in the Pearl River Mouth Basin, establishing a critical geographic anchor for the nation’s carbon management strategy. This regional focus allows for the development of localized expertise and supply chains, transitioning from a single-project site to a blueprint for a broader industrial decarbonization hub in Guangdong province. This contrasts with the more distributed global project portfolios of majors like Exxon Mobil and Total Energies.

Dominance in the Pearl River Mouth Basin

The choice of the Enping oilfield cluster, located approximately 200 kilometers southwest of Shenzhen, was strategic for establishing China’s first offshore CCUS operation. Its geology and existing infrastructure provided an ideal testbed for deploying and validating the technology.

• The Enping 15-1 project utilizes dome-like geological structures at depths between 1, 200 and 1, 600 meters for permanent CO 2 storage, leveraging the natural formations of the basin.
• The operational success in this region provides CNOOC with invaluable site-specific data on reservoir behavior and sequestration integrity, de-risking future projects in the South China Sea.
• This regional concentration differs from the approach of its domestic rival, Petro China, which has historically focused on large-scale onshore CCUS-EOR projects in regions like Jilin and Xinjiang.

From Single Project to Regional Hub

Building on the successful launch of Enping 15-1, CNOOC has already signaled its intent to scale its geographic impact beyond a single oilfield. The announcement of a new cluster project marks a strategic evolution toward a hub-and-spoke model.

• In September 2025, CNOOC announced that a 10-million-ton CCS cluster project is under development in Huizhou, Guangdong.
• This future project plans to capture emissions from a variety of local industrial sources, not just oil and gas operations, and transport them for offshore storage.
• This planned expansion signals a strategic shift from self-contained decarbonization to offering carbon management as a service to the broader industrial economy in the Greater Bay Area, one of China’s most significant economic zones.

100% Domestic Localization, CNOOC’s Full-Chain CCUS System

A primary outcome of CNOOC‘s 2025 initiatives is the establishment of China’s first complete offshore CCUS engineering and equipment system with a 100% domestic localization rate. This achievement in technological self-reliance marks a significant maturation of China’s industrial capabilities in the energy transition sector, reducing dependence on foreign technology and creating potential for future exports. This milestone separates CNOOC‘s approach from joint ventures common in the sector, such as those pursued by Equinor in Europe and North America.

Achieving Full-Chain Domestic Capability

The Enping 15-1 project served as a catalyst for developing a fully domestic supply chain for complex offshore CCUS technology. Before 2025, such projects would have likely required significant foreign technology and expertise.

• The project’s success represents a full-chain upgrade in China’s domestic technological capacity, from CO 2 capture and compression to injection and subsea storage equipment.
• This self-sufficiency is a key component of China’s broader strategy for technological leadership and energy security, aligning with its “Dual Carbon” national goals.
• Developing this domestic expertise and manufacturing base reduces project costs and lead times, creating a competitive advantage for CNOOC and other Chinese firms in the growing Asian CCUS market.

From Pilot to Replicable System

The operational validation of the Enping 15-1 project in 2025 transforms the technology from a one-off pilot into a replicable, commercially viable system. This maturation is critical for scaling up to meet national climate targets.

• The facility’s stable operation, running for over 15, 000 hours by September 2025, provides a proven technical blueprint for future offshore projects.
• The standardized domestic equipment and engineering processes developed for this project can now be applied to other sites, accelerating deployment and reducing project-specific design challenges.
• This moves China’s offshore CCUS technology from a developmental stage to a commercially mature solution ready for wider application, both for EOR and dedicated industrial sequestration.

Post-Combustion Dominates Global Carbon Capture Market
Post-Combustion Capture technology dominates the global carbon capture market, holding a 50.0% share in 2025. This indicates its established position as the leading method for industrial emissions reduction, driven by existing infrastructure compatibility and technological maturity.

$6.6B Carbon Capture Market Set for Double-Digit Growth
The Carbon Capture and Storage (CCS) market is poised for significant expansion, valued at $6.6 billion in 2025 and projected to grow at a 10.6% CAGR from 2026-2035. This double-digit growth signals robust investor confidence and increasing regulatory pressure for decarbonization across multiple industries.

(Source: market.us — via Who's Leading In Carbon Capture: Europe Vs North America – CaptureMap)

SWOT Analysis, CNOOC Economic Viability vs. Modest Scale

CNOOC‘s 2025 CCUS initiatives highlight a core strength in creating an economically viable model through EOR integration but also reveal a weakness in the initial project’s modest scale compared to global developments. The establishment of domestic technology presents a clear opportunity for market leadership, while the reliance on EOR could pose a long-term strategic threat if policies shift away from fossil fuel production.

Table: SWOT Analysis for CNOOC’s CCUS Strategy

CNOOC 10-Million-Ton Hub, Next Steps for Regional Scale (2026)

The most critical signal for CNOOC‘s strategy beyond 2025 is its ability to transition from a single, integrated CCUS-EOR project to a large-scale, multi-source carbon management service provider. The planned 10-million-ton Huizhou CCS cluster will be the primary test of this ambition. If successful, it would position CNOOC as a dominant force in Asia’s industrial decarbonization market.

Monitoring the Huizhou Hub Development

The next 12 to 24 months will be crucial for observing whether CNOOC can convert its hub-and-spoke ambition into a funded, commercially viable project. Progress on the Huizhou cluster will be the leading indicator of its long-term CCUS strategy.

• Watch for final investment decisions (FIDs) and signed agreements with industrial partners in the Guangdong region for CO 2 offtake.
• Monitor the development of shared infrastructure, such as pipelines and receiving terminals, which are necessary to support a multi-source hub model.
• Success in securing these foundational elements will validate the strategic shift from a self-contained oilfield project to a regional decarbonization utility.

Shift from EOR to Industrial Services

A key scenario to watch is whether CNOOC‘s future projects continue to rely on EOR for economic viability or if they can operate as pure sequestration services. The structure of the Huizhou project will provide a clear signal on this strategic direction.

• If the Huizhou project primarily serves industrial emitters without an EOR component, it would indicate growing confidence in the standalone economics of carbon storage, likely supported by policy incentives.
• Conversely, if it also incorporates EOR at nearby oilfields, it suggests the economic model still requires the financial benefits of increased oil production to be viable at scale.
• This evolution will determine whether CNOOC‘s CCUS business becomes a true climate solution or remains an efficiency tool for its core fossil fuel operations.

The questions your competitors are already asking

This report covers one angle of CNOOC’s carbon capture strategy. The questions that matter most depend on your work.

• PetroChina onshore carbon capture projects
• Economic viability of carbon capture for oil recovery
• Industrial emissions in Guangdong Greater Bay Area
• Chinese companies making carbon capture equipment

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