China National Offshore Oil Corporation (CNOOC) announced on Wednesday that it has installed the first domestically made sea water oil and gas extraction facility "Christmas Tree" in South China's Hainan Province.

The "Christmas Tree" is an oil and gas extraction assembly with different parts to control the volume of oil or gas well during extraction, and is an essential part of the CNOOC-led deep sea oil and gas extraction system building program, the company told the Global Times on Wednesday.

The extraction system is made using multiple parts, including deep sea wellhead, the "Christmas Tree," deep sea control system and pipelines. Only five companies in the US and European have the ability to build the system independently, and the installation of the "Christmas Tree" marks a further step in China's deep sea oil and gas resource development.

Once the system is finished and put into service, the cost of extraction will be reduced by nearly 27 percent, while resource development in surrounding sea areas can be accelerated, a CNOOC representative said.