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China National Offshore Oil Corporation (CNOOC) is targeting net production of 700 million to 720 million barrels of oil equivalent (MMboe) in 2024.
The production will be divided into 69 percent for China and 31 percent for overseas accounts, the state-owned oil company said in a recent news release. CNOOC reported 2023 net production of approximately 675 MMboe, which is the fifth straight year it has achieved a record high. The company attributed the output growth to project continuity and a focus on capital investment, with its capital expenditure expected to be around $18.04 billion (CNY 128 billion).
CNOOC added that it is targeting 780 to 800 MMboe for 2025 and 810 to 830 MMboe for 2026. The company said its 2024 total capital expenditure budget is $17.62 billion to $19.03 billion (CNY 125 billion to 135 billion), of which exploration, development, and production capitalization are expected to account for approximately 16 percent, 63 percent, and 19 percent, respectively.
In 2024, CNOOC expects to have a number of high-quality new projects put into production, including the Suizhong 36-1/Lvda 5-2 oil field secondary adjustment and development project, the Bozhong 19-2 oil field development project, and the Shenhai No. 1 Phase II natural gas development project. Meanwhile, the Huizhou 26-6 oil field development project, the Shenfu deep coalbed methane exploration and development demonstration project, and the overseas Brazilian Mero3 project, will strongly support production growth, the company noted.
CNOOC continues to focus on looking for large- and medium-sized oil and gas fields and consolidating its resource base for increasing reserves and production. In 2024, the company will continue to emphasize exploration to help increase reserves and production efficiently.
The company plans to increase its efforts in natural gas exploration, and push forward with the construction of gas regions in the South China Sea, the Bohai Sea and onshore China, respectively. Last year, the company made new exploration discoveries with proved in-place volume of over 100 MMboe in the Bohai Sea and deepwater South China Sea, which is the fifth consecutive year it has discovered assets with at least 100 MMboe.
On the energy transition front, CNOOC said it is pursuing green development and exploring the industrialization of carbon capture technologies, having executed a comprehensive assessment of storage potential offshore China. The company is planning an offshore carbon capture, utilization, and storage (CCUS) demonstration center in northern China tapping the Bozhong 19-6 gas field.
Further, CNOOC said it plans to develop technologies for deep sea wind power generation and continues to promote the integrated development of offshore wind power and oil and gas production. The company anticipates green electricity consumption to exceed 700 million kilowatt-hours in 2024.
“In the coming year, CNOOC Limited will aim high while keeping its feet on the ground”, CNOOC President and CEO Zhou Xinhuai said. “We will implement the three key programs of increasing reserves and production, technological innovation and green development, and press ahead with the initiative of quality and efficiency enhancement, so as to lay a solid foundation for development, and improve the capability of value creation”.
In a report published November 2023 by Germany-based environmental non-profit Urgewald, CNOOC was the second largest spender on oil and gas exploration at $3.2 billion, second only to another state-owned company, China National Petroleum Corporation, which was at $5.9 billion. The report was the second update of the Global Oil & Gas Exit List (GOGEL), a public database that provides a detailed breakdown of the activities of oil and gas companies worldwide.
