The Kaiping oil cluster, discovered in 2023, is a cornerstone of CNOOC Ltd's strategy to sustain production in the prolific Pearl River Mouth basin. The discovery well tested at approximately 7,680 barrels per day, confirming the field's substantial commercial potential.

Contract Award and Bidding Process

OneSubsea, a joint venture of SLB, Aker Solutions, and Subsea7, has emerged as the front runner for a major subsea production system (SPS) contract for the Kaiping cluster. CNOOC Ltd recently concluded a competitive bidding process, with final commercial offers submitted in January following a tender launched in June 2025. While Baker Hughes was another qualified bidder, OneSubsea's commercial proposal provided a decisive competitive advantage. TechnipFMC, initially seen as a potential bidder, opted not to submit a commercial offer. CNOOC Ltd is finalizing internal paperwork and approval for the contract, which would position OneSubsea as a key technological partner for developing deepwater resources in the basin.

Development Plan and Infrastructure

First oil from the Kaiping development is targeted for October 2029. The overall plan includes two subsea production systems (KP18-1 1d and KP18-1 2d) and a cylindrical floating production, storage and offloading (FPSO) unit. China's Offshore Oil Engineering Company (COOEC) has been contracted for the FPSO, replicating a design first used at the Liuhua complex.

The project requires up to 30 subsea trees for the Kaiping 11-4 and Kaiping 18-1 fields, located about 256 kilometers offshore Zhuhai in water depths of 462 to 499 meters. The likely scope involves the SPS contractor supplying about 20 trees, with a Chinese contractor such as COOEC or CNOOC Energy Technology & Services supplying the remaining 10.

The associated subsea infrastructure is extensive:

• Pipelines: Four subsea multiphase pipelines (two 4.2 km lines from KP18-1 1d to FPSO; two 4.5 km lines from KP18-1 2d to FPSO) and one 4.3 km subsea gas injection pipeline from the FPSO to the KP18-1 1d SPS.
• Umbilicals: Three lines (two from FPSO to KP18-1 1d SPS at 4.1 km and 4.8 km; one from FPSO to KP18-1 2d SPS at 4.6 km).
• Power Cables: Six subsea power cables (three connecting FPSO to KP18-1 1d SPS; three connecting FPSO to KP18-1 2d SPS).

Field Configuration and Contract Significance

The KP18-1 1d SPS will consist of 18 production wells (16 oil producers and two water injectors), while the KP18-1 2d SPS will involve 11 oil production wells. If confirmed, the Kaiping contract would be the second SPS deal from CNOOC Ltd in the South China Sea for OneSubsea stakeholder Aker Solutions, following a $205 million award for the Lingshui 17-2 gas field.