CNOOC Ltd. has reduced its annual net production target for 2020 to 505-515 MMboe from 520-530 MMboe and its total capital expenditures for the year to RMB 75-85 billion from RMB 85-95 billion, response to the low oil price environment.
Cuts were reported as part of the company’s first quarter operational statistics for the year’s first quarter. Unaudited oil and gas sales revenue reached RMB 39.95 billion in the quarter, down 5.5% year-over-year, mainly due to the combined effect of lower realized oil price and increased oil and gas sales volume. Capital expenditure reached RMB 16.90 billion for the quarter, up 20.1% year-over-year.
Total net production for the quarter was 131.5 MMboe, a 9.5% year-over-year increase. Production from China increased by 9.7% year-over-year to 87.1 MMboe, mainly attributable to commencement of new projects and the acquisition of China United Coalbed Methane Corp. Ltd. Overseas production increased by 9% year-over-year to 44.5 MMboe, mainly due to production contribution from new projects including Egina oilfield in Nigeria and Appomattox oilfield in the US Gulf of Mexico. For the new projects planned this year, Liza oilfield Phase 1 in Guyana came on stream ahead of schedule in December 2019, and other projects progressed as scheduled.
During the period, CNOOC made two discoveries and drilled 21 successful appraisal wells. In offshore China, Kenli 6-1 oil and gas bearing structure was successfully appraised and became the first large-sized oilfield in Laibei lower uplift, which further proved the exploration potential of the Neogene lithologic reservoir in Laizhou Bay (OGJ Online, Mar. 16, 2020). In Guyana, the 16th new discovery, Uaru, was made in the Stabroek block (OGJ Online, Jan. 27, 2020).
