CNOOC Limited (the "Company", NYSE: CEO, SEHK: 00883, TSX: CNU) today announced its business strategy and development plan for the year 2015.
The Company's net production target for 2015 is in the range of 475 to 495 million barrels of oil equivalent (BOE), of which production from China and overseas accounts for approximately 67% and 33% respectively. The net production targets set for 2016 and 2017 are around 509 and 513 million BOE respectively. The estimated net production for 2014 is approximately 432 million BOE.
There will be 7 new projects coming on stream, including the Jinzhou 9-3 comprehensive adjustment project which already commenced production. Both the Kenli 10-1 project and the Bozhong 28/34 comprehensive adjustment project located in Bohai are expected to reach peak production of around 36 and 30 thousand BOE per day respectively.
Within the year, we plan to drill around 162 exploration wells and acquire approximately 36 thousand kilometers of 2-Dimensional (2D) seismic data as well as approximately 14 thousand square kilometers of 3-Dimensional (3D) seismic data. The reserve replacement ratio (RRR) is targeted at over 100%.
The total capital expenditure budget is in the range of RMB70 billion to 80 billion in 2015 with a decrease of 26-35% over the estimated realized capital expenditure for 2014, among which the capital expenditures for exploration, development and production account for around 21%, 67% and 10% respectively. The Company expects to achieve all of its annual targets by cost control and efficiency enhancement despite the lower capital expenditure.
Mr. Zhong Hua, CFO of the Company, commented, "In response to challenges from falling oil prices, we will control our costs and strive for the effective implementation of our capital expenditure plan in order to improve the overall performance of the Company."
Mr. Li Fanrong, CEO of the Company, commented, "Facing the complicated and highly volatile macro environment in 2015, the Company will continue to strengthen the management of internal operations and make efforts to meet annual operational targets. Meanwhile, the Company will ensure an appropriate balance between short-term return and long-term development, and implement prudent capital investment plan in order to continuously carry out its 'New Leap Forward' strategy."