China National Offshore Oil Corporation (CNOOC) targets 700–720 million barrels of oil (mboe) in 2024, with China accounting for 69% and the rest through overseas accounts, the company said.
In its 2024 business strategy and development plan, the company has set a net production target for 2025 and 2026 of 780–800mboe and 810–830mboe, respectively.
The company insists on increasing reserves and production, as well as maintaining the “strong growth” of its oil and gas production. In 2023, CNOOC’s net production was expected to reach approximately 675mboe, marking a record production high for five consecutive years.
“We focus on the efficiency of investment and make prudent plans on capital expenditure to ensure the sustainable development of our oil and gas business,” the company statement said.
CNOOC has allocated 125bn–135bn yuan ($17.63bn–19.07bn) for capital expenditure in 2024, with exploration, development and production accounting for 16%, 63% and 19%, respectively.
In 2023, the company expedited project approvals, accelerated construction capacity and advanced engineering standardization. It is expected to record a capital expenditure of approximately 128bn yuan.
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The company is looking for large and medium-sized oil and gas fields and is working to strengthen its resource base to increase reserves and production, it said. The exploration workload of the company will remain high in 2024 to improve efficiency in reserves and production.
In 2023, CNOOC made new oil and gas exploration discoveries of 100 million tonnes in the Bohai Sea and the deepwater areas of the South China Sea, marking the fifth consecutive year of achieving discoveries of 100 million tons.
As for the energy transition, CNOOC has pursued “green development” and explored technologies such as carbon capture, storage and utilization (CCUS). An offshore demonstration centre for CCUS will be established in northern China, relying on the Bozhong 19-6 gas field.
The company is committed to developing unique advantages in generating wind power from the deep sea. It actively promotes the combined development of offshore wind power and oil and gas production. It also aims to accelerate the substitution of green power and expects the consumption of green electricity to surpass 700 million kilowatt-hours by 2024.
Zhou Xinhuai, CEO and president of the company, said: “In the new year, CNOOC will persist in aiming high and being down-to-earth, and solidly promote the three major projects of increasing reserves and production, technological innovation and green development, and implement ‘improving quality and efficiency’. Upgrade actions will consolidate the company’s development foundation and continuously improve its value creation capabilities.”