In 2020, CNOOC's exploration and development investment exceeded 66.3 billion yuan, with production reaching over 520 million barrels of oil equivalent.

On January 13, CNOOC held its 2020 Business Strategy and Development Plan press conference in Hong Kong. During the event, CNOOC announced that the company’s targeted net oil and gas production for 2020 would reach 520 million to 530 million barrels of oil equivalent, representing a year-on-year increase of 3.34% to 5.37%. Of this total, approximately 64% will come from China, while overseas operations will account for about 36%. CNOOC noted that its net oil and gas production in 2019 is expected to exceed the initial annual target, reaching around 503 million barrels of oil equivalent. Looking ahead, CNOOC forecasts its net oil and gas output to climb further to approximately 555 million barrels of oil equivalent in 2021 and 590 million barrels of oil equivalent in 2022. Notably, the share of domestic oil and gas production is projected to decline to 59%, while overseas production is set to rise to 41%. In 2020, CNOOC has allocated a total capital expenditure budget of RMB 85 billion to RMB 95 billion. Among these expenditures, investments in exploration, development, production, and other areas are expected to account for roughly 20%, 58%, 20%, and 2% of the total, respectively. Based on this breakdown, CNOOC’s planned capital spending on exploration and development in 2020 is estimated at RMB 66.3 billion to RMB 74.1 billion, reflecting an increase of nearly 20% compared to the previous year. For reference, in 2019, CNOOC’s total capital expenditure was between RMB 70 billion and RMB 80 billion, with exploration and development investments accounting for a combined 79%, totaling RMB 55.3 billion to RMB 63.2 billion. In 2020, CNOOC plans to drill 227 exploration wells and acquire approximately 27,000 square kilometers of 3D seismic data. The company also anticipates the commissioning of ten new projects throughout the year, including adjustments to Area 4 of the Penglai 19-3 oilfield and Phase II of the Penglai 19-9 oilfield in China’s offshore waters, as well as the first phase of the Qinhuangdao 33-1 South Oilfield, the pilot development area of the Bohong 19-6 condensate gas field, the joint development project involving Luda 16-3 and 21-2, and the S1 well area of the Nanbao 35-2 oilfield, among others. CNOOC Chief Financial Officer Xie Weizhi emphasized that the company will continue to maintain competitive per-barrel oil costs, uphold prudent investment decisions, and ensure that capital expenditures are executed efficiently according to plan. According to CNOOC’s financial report for the first half of 2019, the company’s key cost per barrel of oil fell below $30, reaching $28.99/barrel—a further 8.9% decrease year-on-year. CNOOC CEO and President Xu Keqiang stated that in 2020, the company will steadily boost its oil and gas reserves and production, focusing on achieving profitable growth in both reserves and output. CNOOC also highlighted that technological advancements hold the potential to unlock vast reserves of heavy crude oil. Currently, the company has identified approximately 600 million tons of heavy oil reserves in the Bohai Sea region, yet only about 100 million tons have been developed so far. Thermal recovery methods are currently contributing less than 100,000 tons annually to production.

Release date:

2020-01-15

　　On January 13, CNOOC held its 2020 Business Strategy and Development Plan press conference in Hong Kong. During the event, CNOOC announced that the company's targeted net oil and gas production for 2020 would reach 520 million to 530 million barrels of oil equivalent, representing a year-on-year increase of 3.34% to 5.37%.

　　Among them, China and overseas production account for approximately 64% and 36%, respectively.

　　China National Offshore Oil Corporation (CNOOC) said its net oil and gas production in 2019 is expected to reach approximately 503 million barrels of oil equivalent, surpassing the target set at the beginning of the year.

　　In 2021 and 2022, CNOOC's net oil and gas production is expected to reach approximately 555 million barrels of oil equivalent and 590 million barrels of oil equivalent, respectively. Meanwhile, the share of domestic oil and gas production will decline to 59%, while the share from overseas operations will rise to 41%.

　　In 2020, CNOOC's total capital expenditure budget was between 85 billion and 95 billion yuan. Capital spending on exploration, development, production, and other areas accounted for approximately 20%, 58%, 20%, and 2% of the total, respectively.

　　Based on this calculation, CNOOC's 2020 capital expenditure budget for exploration and development is estimated at between 66.3 billion and 74.1 billion yuan, representing a year-on-year increase of nearly 20%.

　　In 2019, CNOOC's total capital expenditure budget was between 70 billion and 80 billion yuan, with exploration and development investments accounting for a combined 79%, totaling RMB 55.3 billion to RMB 63.2 billion.

　　In 2020, CNOOC planned to drill 227 exploration wells and collect approximately 27,000 square kilometers of 3D seismic data.

　　CNOOC expects ten new projects to come on stream in 2020, including the adjustment of Block 4 in the Penglai 19-3 oilfield and Phase II of the Penglai 19-9 oilfield in China's offshore waters, Phase I of the Qinhuangdao 33-1 South oilfield, the pilot area of the Bohzhong 19-6 condensate gas field, the jointly developed Luda 16-3/21-2 project, and the S1 well area in the Nanpu 35-2 oilfield, among others.

　　China National Offshore Oil Corporation (CNOOC) Chief Financial Officer Xie Weizhi stated that the company will continue to maintain competitive per-barrel oil costs, uphold prudent investment decisions, and ensure that capital expenditures are effectively implemented as planned.

　　China National Offshore Oil Corporation's financial report shows that in the first half of 2019, its major oil cost per barrel dropped below $30, reaching $28.99 per barrel—a further year-on-year decrease of 8.9%.

　　China National Offshore Oil Corporation (CNOOC) CEO and President Xu Keqiang stated that in 2020, CNOOC will steadily increase its oil and gas reserves and production, while striving for profitable reserves and output.

　　CNOOC also stated that technological advancements will unlock vast reserves of heavy oil. CNOOC has currently discovered approximately 600 million tons of heavy oil reserves in the Bohai Sea region, yet only about 100 million tons have been developed so far—contributing less than 100,000 tons annually through thermal recovery methods.

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