(Reuters) – China National Offshore Oil Corp (CNOOC) will trim annual investment by 10% to 15% in 2020, while maintaining its goal of increasing domestic crude oil and natural gas production for the year, the company said in a statement on Wednesday.
CNOOC Ltd, a listed arm of the national offshore energy producer, said during a media briefing in late March the firm will “significantly” cut capital expenditure.
Oil and gas companies worldwide are reducing spending this year following a collapse in oil prices and plummeting fuel demand amid the coronavirus outbreak.
CNOOC did not give any further details on its capital expenditure plan or on its oil and gas production targets for its domestic and overseas blocks.
It will cut total costs by a least 10% and reduce losses at its money-losing firms by 5 billion yuan ($710 million) in 2020, the statement said.
The company did not give details on the unprofitable businesses. One of its big loss-makers, however, is its gas and power unit, and the company said in March it is set to have its Hong Kong-listed flagship take over that sector.
CNOOC has a 25 percent interest in Guyana’s Stabroek block where US oil major ExxonMobil is operator.