CNOOC forecasts 10 field startups offshore China

CNOOC (NYSE: CEO) is targeting net production in the 338-348 MMboe range this year, which is slightly less than last year.

Offshore staff

HONG KONGCNOOC (NYSE: CEO) is targeting net production in the 338-348 MMboe range this year, which is slightly less than last year.

The company expects to bring onstream 10 new oil and gas fields offshore China, including theLiwan 3-1, the country’s first large-sized deepwater gas field. Another highlight should be the startup of the Suizhong 36-1 Phase II adjustment project, which relates to fields already in production.

This year, CNOOC expects to drill about 140 exploration wells, acquire about 15,400 km (9,569 mi) of 2D seismic data and 24,800 sq km (9,575 sq mi) of 3D seismic, and to pursue further deepwater exploration. The company aims to maintain its reserve replacement ratio of more than 100%.

The company expects its total capex to reach $12-14 billion, with exploration, development, and production accounting for about 19%, 70%, and 11% respectively.

CFO Zhong Hua said: “While the operating cost for the energy sector keeps rising up, the company will continue to execute stringent cost control and prudent financial policy. Meanwhile, we will maintain a robust capital expenditure plan to support our production and reserve growth in the future.”

1/30/2013

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