China’s offshore oil company CNOOC is targeting three more offshore oil and gas projects coming on stream in 2017. Revealing its business plan for 2017, the company said the capex would be $10 billion.
The Chinese oil producer said on Thursday that five new projects were scheduled to begin production in 2017, two of which have already come on stream in January.
Offshore Energy Today reported last week that the Penglai 19-9 oilfield comprehensive adjustment project located in Bohai offshore China began production. The two working wells, of the planned 57, currently produce 750 barrels of crude oil per day.
The other project planned for 2017 that already came on stream is the Enping 23-1 in the Pearl River Mouth Basin of the South China Sea. The project is expected to reach its peak production of 24,800 barrels of crude oil per day in 2018.
The three projects also planned to begin production during the year are phase two of the Weizhou 12-2 oilfield project in China, the BD gas field in Indonesia, and the Hangingstone project in Canada. The company also said it has nearly 20 projects under construction.
The Weizhou 12-2 project is located in Beibu Gulf Basin of the South China Sea with an average water depth of approximately 36 meters. The first phase of the project came on stream in early 2016.
The Madura BD gas field is located offshore East Java some 16 kilometers south of the Madura Island while the Hangingstone project is the only onshore project expected to begin production this year.
CNOOC also said that the company’s total capital expenditure for 2017 would be in the range of RMB60.0 to RMB70.0 billion ($8.7-10.1 billion). Of that amount, the capital expenditures for exploration, development, and production will account for around 18, 66, and 15 percent respectively.
126 exploration wells
As far as the company’s net production target for 2017 is concerned, the company believes it would be in the range of 450 to 460 million barrels of oil equivalent, of which approximately 64 and 36 percent would be produced in China and overseas, respectively.
The net production target range set for 2018 and 2019 are expected to increase to 455-465 mmboe and 460-470 mmboe, respectively, with net production for 2016 expected to be at around 476 mmboe.
Furthermore, CNOOC plans to drill 126 exploration wells and acquire approximately 13 thousand square kilometers of 3D seismic data during 2017.
Yuan Guangyu, President of the company, said: “We will maintain prudent financial policy and improve capital efficiency in response to the continued challenge posed by low oil prices. Also, we will optimize the Company’s asset portfolio and focus on return to make steady progress in all businesses.”
Yang Hua, Chairman and CEO of CNOOC, added: “In 2017, we will balance both short-term and mid to long-term development, pursue quality growth, increase profitability-oriented production volume to bring a better return for our investors.”