CNOOC plans 173 new wells in 2019; targets almost 500 million boe

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CNOOC Limited on Wednesday announced that the company’s net production target for 2019 is 480 million to 490 million barrels of oil equivalent (BOE), of which, production from China and overseas, accounts for approximately 63% and 37%, respectively.

“The Company’s net production for 2018 is expected to be approximately 475 million BOE. The Company’s net production for 2020 and 2021 are estimated to be 505 million to 515 million BOE and 535 million to 545 million BOE, respectively. CNOOC Limited said in an information bulletin.

It said that in 2019, six new projects are expected to come on stream, including the Egina oil field in Nigeria and Huizhou project in offshore China.

“The other four projects, namely Appomattox project in the US Gulf of Mexico, Bozhong 34-9 oil field, Caofeidian 11-1/11-6 comprehensive adjustment project and Wenchang 13-2 comprehensive adjustment project in offshore China will commence production as scheduled in the year,” it said.

CNOOC Limited said that in 2019 it plans to drill 173 exploration wells and acquire approximately 28 thousand square kilometers 3-Dimensional (3D) seismic data.

According to the bulletin, total capital expenditure for the Company in 2019 is budgeted at RMB70.0 billion to RMB80.0 billion. “The capital expenditures for exploration, development and production account for approximately 20%, 59% and 19%, respectively,” the company said.

CNOOC Limited through CNOOC Nexen is a 25% stakeholder in the Stabroek Block offshore Guyana for which the operator is ExxonMobil. The Liza field, located within the Stabroek Block, is to begin its first phase of production in 2020 and reach a peak rate of 120,000 barrels per day.

Mr. Xie Weizhi, CFO of CNOOC Limited, said: “The Company will maintain its prudent financial policy and investment decision-making, and ensure the effective implementation of the capital expenditure plan to improve the overall performance of the Company.”

Mr. Yuan Guangyu, CEO of the Company, said: “In 2019, the Company will steadily increase the reserve and production of oil and gas and accelerate its digital transformation. Meanwhile, we will continue to pursue a green, low-carbon and environment-friendly development model and promote the high-quality development of the Company, in order to deliver improved shareholder returns.”