CNOOC to increase E&P spending

Offshore staff

HONG KONG -- CNOOC is targeting net production this year of 275-290 MMboe, up from an estimated 226-228 MMboe in 2009.

During 2010, the company expects to bring nine new projects, all offshore China, including JinZhou 25-1 and BoZhong 19-4. CNOOC’s exploration activities this year will focus on finding oil in core areas, natural gas, and deepwater exploration. The program is to include drilling 98 exploration wells, acquiring 21,000 km (13,049 mi) of 2D seismic, and11,800 sq km (4,556 sq mi) of 3D seismic. The company aims for a reserve replacement ratio over 100% in 2010.

The capex budget this year will be $7.93 billion, an increase of 29.5% over the estimated total for 2009. This comprises $1.47 billion for exploration, $4.81 billion for development, and $1.5 billion for production.

“While the operating cost for the energy sector keeps climbing up, we will continue to implement our low-cost strategy to make a balance between achieving higher production growth and maintaining competitive cost advantage,” said Yang Hua, president & CFO.

02/03/2010

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