CNOOC to invest up to $12.7bn this year for increased production

China National Offshore Oil Corporation (CNOOC) is planning to raise its total capital spending this year to CNY70bn-80bn ($11.11bn-12.7bn) in an attempt to ramp up production.

The company has increased its net production target for this year between 470 million and 480 million barrels of oil equivalent (boe).

Approximately 64% of the total planned production will come from China and the remaining will be contributed by the company’s overseas operations.

Meanwhile, the company’s net production for last year is anticipated to be around 469 million boe.

CNOOC CEO Yuan Guangyu said: “In 2018, the company endeavours to strengthen innovation and technology-driven philosophy.

“Meanwhile, we will continue to pursue a sustainable and environmentally friendly development model while increasing oil and gas production and reserves, in order to deliver improved shareholder returns.”

Net production in 2019 and 2020 is projected to be around 485 million boe and 500 million boe, respectively.

New projects expected to come on stream this year include Stampede oil field in the US, as well as Weizhou 6-13 oil field, Penglai 19-3 oil field 1/3/8/9 comprehensive adjustment project, Dongfang 13-2 gas fields and Wenchang 9-2/9-3/10-3 gas fields in offshore China.

As per the strategy and business plans, the company intends to promote the progress of its major overseas projects.

A total of 132 exploration wells are expected to be drilled this year.

Furthermore, the company is planning to acquire around 19,000km² 3D seismic data.