Wednesday, February 8, 2023

CNOOC excited about Liza Phase Two start-up; outlines 2022 business strategy

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China National Offshore Oil Corporation (CNOOC) which has a 25 percent working interest in the Stabroek Block, outlined on Tuesday, key details of its 2022 business strategy.

The company said that it has 13 new projects coming on stream that it is excited about. These include the Bozhong 29-6 oilfield development; the development of Kenli 6-1 oilfield Block 5-1, 5-2, 6-1; the Enping 15- 1/10-2/15-2/20-4 oilfields joint development and Shenfu South gas field in China; as well as the Liza Phase 2 Project in Guyana.

The US$6 billion Liza Phase 2 development will have a total of six drill centers as well as approximately 30 wells, including 15 for production, nine for water injection and six for gas injection. Production is on track for start-up this quarter.

The project will utilize the Liza Unity FPSO which was constructed in Singapore. The vessel will have a gross production capacity of 220,000 barrels of oil per day and will develop approximately 600 million barrels of oil.

Further to this, CNOOC has said in its 2020 Annual Report that South America is one of its important sources of future reserve and production growth, noting that its interests in oil and gas blocks in Brazil, Guyana, and Colombia, as well as a 50% interest in BC Energy Investments Corp. in Argentina, are of key value to shareholders.

As for the company’s targeted net production for 2022, it said this is pegged at 600 million to 610 million barrels of oil equivalent (BOE), of which, production from China and overseas accounts for approximately 69% and 31%, respectively.

It said net production for 2023 and 2024 are estimated to be 640 million to 650 million BOE and 680 million to 690 million BOE, respectively.

With respect to total capital expenditure for 2022, CNOOC said this is budgeted at RMB $90 billion to RMB $100.2 billion. The capital expenditures for exploration, development, production and others will account for approximately 20%, 57%, 21% and 2% of the total capital expenditure, respectively.

In 2022, the company said it plans to drill 227 offshore exploration wells and 132 onshore unconventional exploration wells and acquire approximately 17 thousand square kilometers 3- Dimensional (3D) seismic data.

Given that 2021 is the 20th anniversary of the Company’s listing, CNOOC said it plans to pay a special dividend in addition to the 2021 year-end regular dividend.

In 2022, CNOOC said it will appropriately implement the share buybacks subject to the authorization granted at the general meeting of shareholders.

In the future, the company said it will remain committed to increasing oil and gas reserves and production, expedite the green energy transition, promote independent technological innovation, and further improve quality and efficiency, so as to continuously improve value creation capability and generate more returns for our shareholders.

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