China’s CNOOC has revealed its 2017 business strategy and development plan that includes a total of five new projects set to come onstream, and a capex that could reach US$10.2 billion (RMB 70 billion).
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Image from CNOOC. |
The company’s net production for the year has been set to be in the range of 450-460 MMboe, of which 64% will be produced in China, and the remaining 36% overseas. Looking further into the future, CNOOC envisions its net production to reach 455-465 MMboe in 2018, and 460-470 MMboe in 2019. As for 2016, net production is expected to be about 476 MMboe.
Five new projects are slated to come onstream in 2017, of which two have already started production in the Pearl River Mouth Basin in the South China Sea: Penglai 19-9, and Enping 23-1 in January.
Two other offshore projects set to start production this year are phase two of the Weizhou 12-2 oilfield project offshore China; and the BD gas field offshore Indonesia. The fifth project is Hangingstone, onshore Canada. In addition, the company currently has nearly 20 projects that are under construction.
During 2017, CNOOC also has its sights set to drill 126 exploration wells and acquire some 13,000sq km of 3D seismic data.
Capital expenditure has been set in the range of $8.7 billion (RMB 60 billion) to $10.2 billion (RMB 70 billion), with the bulk allotted for development (66%). About 18% will be allotted for exploration, and 15% for production.
“We will maintain prudent financial policy and improve capital efficiency in response to the continued challenge posed by low oil prices. Also, we will optimize the company’s asset portfolio and focus on return to make steady progress in all businesses,” says Yuan Guangyu, CNOOC president.
“In 2017, we will balance both short-term and mid to long-term development, pursue quality growth, increase profitability-oriented production volume in order to bring better return for our investors,” says Yang Hua, CNOOC chairman and CEO.
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