(Asia-Pacific) - China's CNOOC Ltd. projects its production volume to be 168-170 MMboe, approximately a 9% year-on-year increase over the estimated 153-157 MMboe last year.
Net production offshore China is projected to be 148-149 MMboe this year, says CNOOC in its 2006 business strategy report.
CNOOC's overseas production is expected to be enhanced by the Northwest Shelf Project in Australia, which is scheduled to supply gas to Guangdong LNG terminal in the first half of this year.
During the year, 10 projects offshore China are expected to come onstream, two of which are ready for production.
Overall for 2006 and 2007, it is expected that 16 projects will be completed.
On the exploration front, the company plans to conduct more drilling and seismic acquisition activities offshore China, particularly in Bohai Bay and the South China Sea, in order to explore oil and gas potentials.
Overseas exploration activities will be further strengthened. The exploration budget is estimated to increase 72% to reach the level of $455 million, and the reserve replacement ratio is targeted to be more than 100% for this year.
The company expects to spend $2.59 billion in development, a 30% year-on-year increase. In total, its 2006 capital expenditure is budgeted at approximately $3.06 billion, 35% up from last year's figure.