China Constructs Its First Deepwater Well in South China Sea

A Chinese coast guard vessel (L) sails near China's oil drilling rig in disputed waters in the South China Sea on May 14, 2014. HOANG DINH NAM/AFP/Getty Images

China recently completed building its first deepwater well in the South China Sea, a technical breakthrough in the country’s offshore drilling efforts as it looks to secure more energy resources.

Meanwhile, Japanese conglomerate Toshiba said a proposed deal to sell its U.S. liquefied natural gas business to a Chinese company has failed because of delays in obtaining approval from U.S. authorities.

First Deepwater Well

On April 8, China National Offshore Oil Corp. (CNOOC), the country’s largest state-owned offshore oil producer, announced on its official website that China’s first domestically constructed deepwater drilling development well, located in the eastern part of the South China Sea, was completed on April 1.