CNOOC targets oil and gas production increase

January 23, 2019, by Offshore Energy Today

CNOOC Limited is targeting a steady increase in oil and gas production during 2019 and the following years.

CNOOC on Wednesday announced its business strategy and development plan for the year 2019.

The company said that its net production for 2018 is expected to be approximately 475 million BOE.

The company’s net production target for 2019 is 480 million to 490 million barrels of oil equivalent (BOE), of which, production from China and overseas accounts for approximately 63% and 37%, respectively.

The company’s net production for 2020 and 2021 are estimated to be 505 million to 515 million BOE and 535 million to 545 million BOE, respectively.

In 2019, six new projects are expected to come on stream, of which the Egina oil field in Nigeria and Huizhou 32-5 oil field comprehensive adjustment/Huizhou 33-1 oil field joint development project in offshore China have already started production.

The other four projects, namely Appomattox project in the US Gulf of Mexico, Bozhong 34-9 oil field, Caofeidian 11-1/11-6 comprehensive adjustment project and Wenchang 13-2 comprehensive adjustment project in offshore China will start production as scheduled in the year.

Exploration

In 2019, the company plans to drill 173 exploration wells and acquire approximately 28 thousand square kilometers 3-Dimensional (3D) seismic data.

Total capital expenditure for the company in 2019 is budgeted at RMB70 billion to RMB80 billion ($10.3 billion to $11.8 billion). The capital expenditures for exploration, development, and production account for approximately 20%, 59% and 19%, respectively.

Xie Weizhi, CFO of the company, said: “The company will maintain its prudent financial policy and investment decision-making, and ensure the effective implementation of the capital expenditure plan to improve the overall performance of the company.”

Yuan Guangyu, CEO of the company, said: “In 2019, the company will steadily increase the reserve and production of oil and gas and accelerate its digital transformation.”