CNOOC Limited forecasts growth

CNOOC Limited is planning capital expenditures between USD 8.73 billion and USD 10.2 billion, the company revealed in its business development strategy for 2017 on Wednesday.

In terms of net production, the company is targeting, between 450 million-460 million boe, a fall from the 476 million boe expected for 2016. Of this quantity, the nation expects to produce 36% overseas, while the remaining 64% will be produced in China. The trend is expected to retain its momentum in 2018, with net production expected to reach 455 million-465 million boe. In 2019, net production is forecast to reach approximately 460 million-470 million boe. In 2017, CNOOC Limited will devote 15% of its capital expenditure to production endeavours, around USD 1.3 billion-1.53 billion

Contributing to the projected rise in production are five developments recently on line or expected to come on line in 2017. Both the Enping 23-1 oilfield and the Penglai 19-9 oilfield development have recently begun production. While some 20 projects are currently under development, only the Weizhou 12-2 oilfield project, the Hangingstone development and Indonesia’s Madura BD gasfield are scheduled to begin production in 2017. CNOOC Limited has earmarked around 66% of its capex for development of its projects, amounting to USD 5.76 billion-6.73 billion.

CNOOC Limited plans to acquire around 13 thousand square kilometres in 3D seismic data, in addition to drilling a planned 126 exploration wells. In terms of capital expenditure, the company plans to devote 18% of the total capex, a total of USD 157 billion-1.83 billion, to exploration endeavors.