Chinese oil firm CNOOC says it is planning to invest RMB 105 billion (US$17.35 billion) to 120 billion ($19.82 billion) on projects during 2014.
Nexen Inc, bought by CNOOC in early 2013, will account for about 19% of the spending. Overall, exploration, development and production CAPEX represents 19%, 65% and 14% respectively, said CNOOC.
The spending will be driven by CNOOC’s net production target for 2014, which is 422-435MM boe, including about 69MM boe from Nexen. In 2013, production was about 412MM boe, 61 million BOE from Nexen.
A large increase in production will come near the end of the year, as first oil from the Golden Eagle development in the UK North Sea is achieved.
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The Golden Eagle development, a £2 billion (US$3.09 billion) investment (£750 million or US$1.85 billion net to Nexen), is expected to produce an estimated 140MM boe (gross) of proved and probable reserves over an 18-yr period.
First oil production is forecast for late 2014, and the development is expected to have an initial gross production rate of up to 70,000 boe/d (about 26,000 boe/d net to Nexen).
CNOOC acquired a 36.5% stake and operatorship in the field through its acquisition of Nexen. Once fully commissioned, Golden Eagle is expected to reach up to 70,000 boe peak daily production.
In total, CNOOC expects about seven to 10 new projects to come on stream in 2014. This includes the Kenli 3-2 and Qinhuangdao 32-6 oil fields in Bohai, which are expected to reach a peak daily production at around 37,000 boe and 36,000 boe respectively. Enping 24-2 project, in Pearl River Mouth Basin, is expected to reach a peak daily production at about 40,000 boe.
CNOOC's exploration program will comprise about 155 exploration wells. The firm also intends to acquire about 26,700km 2) seismic data, and about 19,400sq km 3D seismic data.