CNOOC to Drill 126 Exploration Wells in 2017


20 January 2017, Beijing — CNOOC Limited will drill 126 exploration wells and acquire approximately 5,000 square miles of 3D seismic data in 2017, according to its latest business strategy and development plan.

The company’s net production target for 2017 is in the range of 450 to 460 million barrels of oil equivalent, of which approximately 64 percent and 36 percent will be produced in China and overseas, respectively.

The net production targets set for 2018 and 2019 are between 455 million and 465 million boe and between 460 million and 470 million boe, respectively. The net production for 2016 is expected to be approximately 476 million boe.

Five new projects will be coming on stream during 2017 for CNOOC, with the Penglai 19-9 oilfield comprehensive adjustment project and the Enping 23-1 oilfields in China already commencing production earlier this year.

The other three projects, namely phase two of the Weizhou 12-2 oilfield project in China, the BD gas field in Indonesia and the Hangingstone project in Canada will commence production as scheduled in the year. Currently, nearly 20 projects are under construction.

The company’s total capital expenditure for 2017 will be in the range of $8.7-10.1 billion (RMB60.0 to RMB70.0 billion). Of that amount, the capital expenditures for exploration, development and production will account for around 18 percent, 66 percent and 15 percent, respectively.

“We will maintain prudent financial policy and improve capital efficiency in response to the continued challenge posed by low oil prices. Also, we will optimise the company’s asset portfolio and focus on return to make steady progress in all businesses,” Yuan Guangyu, CNOOC president, said.