Beijing-based China National Offshore Oil Corp. (CNOOC)’s 2016 business and development plan shows a slight reduction of about 5% when compared to 2015 due to continued challenges with low oil prices.
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Image of CNOOC's Golden Eagle. Courtesy of CNOOC. |
For this year, CNOOC has its net production target set in the range of 470-485 MMboe, compared with 2015’s approximate 495 MMboe.An estimated 66% will be produced in China and about 34% to be produced overseas from the country.
The company anticipates four new projects to come onstream in 2016, which include the Kenli 10-4, Panyu 11-5, Weizhou 6-9/6-10 oilfield comprehensive adjustment and Enping 18-1. Currently, CNOOC has nearly 20 projects under construction.
Plans for the year also include to drill some 115 exploration wells and acquire approximately 10,000km of 2D seismic data, as well as approximately 14,000sq km of 3D seismic data.
CNOOC’s total capital expenditure is expected to not exceed US$9.1 billion (RMB60.0 billion), which the company said it expects to achieve by cost control and efficiency enhancement despite the lower capital expenditure.
Of the $9.1 billion, CNOOC will use 19% for exploration, 64% for development, and 13% for production.
Moving forward, CNOOC is setting its production targets in 2017 to be 484 MMboe, with an increase in 2018 with 502 MMboe.
"In response to the continued challenge posed by low oil prices, we will maintain prudent financial policy and further strengthen cost-control measures in order to make steady progress in the overall business, including exploration, development and production," Zhong Hua, CNOOC CFO said.
"Faced with an increasingly complicated operating environment in 2016, the company will fully utilize market mechanisms and combine innovations in technology and management in order to reduce costs and enhance efficiency,” Li Fanrong, CNOOC CEO said. “In addition, the company will ensure an appropriate balance between short-term returns and long-term growth to promote a steady and healthy development."
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