China’s CNOOC targets higher oil, gas production in 2012

19 January 2012 04:38  [Source: ICIS news]

SINGAPORE (ICIS)--China National Offshore Oil Corp (CNOOC) is aiming to produce 330m-340m barrels of oil equivalent (boe) in 2012, an increase from 331m-332m bbl in 2011, the company said late on Wednesday.

The firm announced this as part of a summary of its business strategy and development plan for the year in a statement on its website.

The company said its total capital expenditure is expected to reach $9.3bn-11bn (€7.3bn-8.6bn) this year and exploration, development and production will account for around 17%, 68% and 14% of the budget, respectively, according to the statement.

CNOOC said it has 16 projects under construction in the mid-to-long term.

The firm has four new offshore projects in China that are expected to come on stream this year, CNOOC said without further details.

In addition, CNOOC’s Panyu 4-2/5-1 adjustment project is expected to produce around 57,000 bbls/day of oil by 2014, the statement said.

More offshore adjustment projects are expected to come on stream in China in the next few years, such as the Long Lake oil sands project in Canada and Missan oilfield in Iraq, which will contribute to CNOOC’s production.

CNOOC completed its $2.1bn acquisition of Canada’s oil sands producer OPTI in November last year.

In addition, CNOOC will strengthen its independent deepwater exploration, while expanding its exploration activities in new areas, the statement said without elaborating further.

This includes 114 exploration wells and three independent deepwater wells in the South China Sea.

The company’s reserve replacement ratio (RRR) is targeted to exceed 100% in 2012, according to the statement.

“In the future, the company will still be targeting to achieve a 6-10% Compound Average Growth Rate (CAGR) on production growth from 2011-2015 by means of regional development and comprehensive adjustments in producing oilfields in offshore China as well as pushing for deepwater exploration and development,” said the company’s CEO, Li Fanrong.

($1 = €0.78)

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By: Adele Zhu

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