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China's largest producer of offshore oil and gas, CNOOC, announced production has begun at the Liuhua 34-2 gas field in the South China Sea on Monday. CNOOC has a 51 percent working interest in the Liuhua 34-2 gas field, while Husky Oil China Limited holds the remaining 49 percent working interest and acts as the operator.

Liuhua 34-2 gas field is located in the Eastern South China Sea, with the water depth in the range of 850 to 1,250 meters. The gas field consists of one producing well and is producing approximately 30 million cubic feet per day.

The field is expected to reach its designed peak production of approximately 45 million cubic feet per day in 2015.

In March this year, CNOOC and Husky Oil China put another deep-water gas field, Liwan 3-1, into operation.

Listed in Hong Kong and New York, CNOOC is the listed subsidiary of China National Offshore Oil Corporation. Husky Oil China Ltd. is a wholly owned subsidiary of Husky Energy, which is headquartered in Calgary of Canada.