CNOOC Limited said it has commenced production from the Kenli 10-4 oilfield off the coast of North China.
The company said the oilfield has an average water depth of approximately 15 metres.
In addition to utilising the existing facilties of Kenli-10 oilfield it also includes the development of one wellhead platform.
There are currently six wells on production, producing a total of 6,540 barrels of crude oil per day.
CNOOC said the oilfield is expected to reach its peak production of 9,600 barrels of oil per day this year.
Earlier this month the company said it would be cutting spending and reduce production as it grapples with the sub $30 oil environment in 2016.