CNOOC provides 2014 business strategy and development plan

Offshore staff

HONG KONGCNOOC Ltd. has provided a summary of its 2014 business strategy and development plan. The company's 2014 net production target ranges from 422 MMboe to 435 MMboe, including 69 MMboe as a result of the Nexen Inc. acquisition. CNOOC’s 2013 net production is estimated at 412 MMboe, including 61 MMboe of production from the Nexen acquisition.

During 2014, CNOOC expects 7 to 10 new projects to come onstream. The independent oil fields Kenli 3-2 and Qinhuangdao 32-6 comprehensive adjustment project under a PSC contract, both located in Bohai, are expected to reach a peak daily production at 37,000 boe and 36,000 boe, respectively.

The Enping 24-2 project in the Pearl River Mouth basin is expected to reach a peak daily production at around 40,000 bbl. First oil from the Golden Eagle development in the UK North Sea, in which CNOOC holds a 36.5% working interest and acts as the operator, is expected in late 2014. Once fully commissioned, Golden Eagle is expected to reach a peak daily production of up to 70,000 boe.

In 2014, CNOOC expects to have about 20 new projects under construction. It has an extensive exploration program this year and plans to drill roughly 155 exploration wells and acquire approximately 26,700 km (16,590 mi) of 2D seismic data, and 19,400 sq km (7,490 sq mi) of 3D seismic data. Within the year, the company will continue to strengthen its deepwater exploration. In 2014, CNOOC is targeted to a reserve replacement ratio of over 100%. In 2014, to support sustainable growth by enhancing exploration and development operation, the company expects to incur a total capital expenditure of RMB 105–120 billion (with Nexen accounting for 19%), in which the capex for exploration, development, and production represent 19%, 65%, and 14%, respectively.

01/20/2014

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