Cnooc Sets Lower Production Target for 2017

State-owned China National Offshore Oil Corporation (Cnooc) has set a i2017 production target in the range of 450mn to 460mn barrels of oil equivalent, lower than its net expected production for 2016 of 476mn boe (1.3mn boe/d).

Five new projects are scheduled to come on stream this year, of which the Penglai 19-9 oilfield comprehensive adjustment project and the Enping 23-1 oilfields in China have already started production, the company said January 19.

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 steam-assisted oil sands project in Alberta, Canada will start production on schedule. Nearly 20 projects are under construction.

The company's total capital expenditure for 2017 will be in the range of yuan 60bn ($8.7bn) to yuan 70bn. Of that amount, the capital expenditures for exploration, development and production will account for around 18%, 66% and 15% respectively.

 Shardul Sharma