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CNOOC expects production to jump in 2013

CNOOC Ltd. has set a net production target of 338-348 million boe for 2013, compared with 341-343 million boe in 2012, anticipating the start-up of 10 oil and natural gas fields offshore China.

In a strategy statement, the state-owned company said the start-ups will include Liwan 3-1 gas field on Block 29/26 in the South China Sea. The field lies in about 1,345 m of water 350 km southeast of Hong Kong. Husky Energy Inc. operates deepwater parts of the field, including development drilling and completions, subsea equipment and controls, and subsea tiebacks to a platform in shallow water, with a 49% interest. CNOOC operates shallow-water infrastructure, including the platform, a pipeline to shore, and an onshore gas processing plant, with 51%.

Liwan 3-1 is one of three fields in the Liwan Gas Project, production from which eventually is to reach 500 MMcfd (OGJ Online, Sept. 20, 2011). The other fields in the project are Liuhua 34-2 and Liuhua 29-1.

CNOOC expects this year to drill 140 exploratory wells and acquire 15,400 line-km of 2D seismic data and 24,800 sq km of 3D seismic data.

It projects capital expenditures of $12-14 billion in 2013, of which 19% will be for exploration, 70% for development, and 11% for production.


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