CNOOC Limited announced a summary of its business strategy and development plan for the year 2010. The total targeted net production of the company in 2010 is 275 million to 290 million barrels of oil equivalent (BOE) (assuming with WTI at $75/barrel). The company’s net production for 2009 is estimated to be 226 million to 228 million BOE (with WTI at $62/barrel).
During the year, nine new projects are expected to come on stream, all of which are located in offshore China, including major projects such as Jinzhou 25-1 and Bozhong 19-4. These new projects, together with projects that came on stream in 2009, are expected to strongly support the company’s production growth in 2010. In the meantime, a mild decline rate on certain producing fields, achieved with the effective measures on enhanced oil recovery, is also expected to be an important driver for the production growth in 2010.
In 2010, the company’s exploration will focus on oil exploration in core areas, natural gas exploration, and deep water exploration, with intensive exploration program including 98 exploration wells, 21,000 kilometers 2D seismic and 11,800 square kilometers 3D seismic. The company aims to achieve a reserve replacement ratio (RRR) of over 100% in 2010.
In 2010, in order to support strong production growth and intensive exploration program, the company’s total capital expenditure is expected to reach US$7.93 billion, representing an increase of approximately 29.5% over the estimated capital expenditure of 2009. During the year, the company’s capital expenditures for exploration, development and production are expected to reach $1.47b, $4.81b, and $1.5b, respectively. The company expects that these capital expenditures will strongly support its production and reserves growth in the future.
