CNOOC plans further net production increase after record 2020

CNOOC Ltd. will target net production of 545-555 MMboe in 2021 following its record-high net production of 528 MMboe in 2020. The company met the annual net production target set in early 2020 despite reducing the goal in April to 505-515 MMboe from 520-530 MMboe in response to the low oil price environment (OGJ Online, Apr. 29, 2020).

Of the 2021 goal, production from China and overseas is expected to account for 68% and 32%, respectively. This year, CNOOC plans to drill 217 exploration wells and collect 17,000 sq km of 3D seismic data. Expected to come on stream in 2021 are 19 new projects, including Lingshui 17-2 gas fields development, Lufeng oil fields regional development, Caofeidian 6-4 oil field offshore China, Buzzard oil field phase II in the UK, and Mero I oil field in Brazil.

Total capital expenditure for 2021 is RMB90-100 billion. Capital expenditures for exploration, development, and production will account for 17%, 61%, and 20% of the total capital expenditure, respectively.

Net production for 2022 and 2023 are estimated to be 590-600 MMboe and 640-650 MMboe, respectively.