Cnooc Expects $12bn Capex in 2018
Chinese state-owned CNOOC expects its total capital expenditure in 2018 to be yuan 70bn to yuan 80bn ($11.2bn-$12.71bn), it said February 1.
Capital expenditures for exploration, development and production account for approximately 18%, 65% and 16% of the total, respectively. A year ago, the company had projected capex of yuan 60bn to yuan 70bn for 2017 but its actual capex last year is estimated to be much lower than that.
CNOOC projects its 2018 net production to be 470mn to 480mn barrels of oil equivalent (boe), so little higher than the 2017 expected net production of 469mn boe.
In 2018, production from China and overseas are expected to account for 64% and 36% respectively. The company’s net production for 2019 and 2020 are estimated to be approximately 485mn boe and 500mn boe, respectively.
In 2018, five new projects are expected to come on stream, namely the Hess-operated Stampede oil and gas field in the US Gulf (CNOOC share 25%) 115 miles south of the Louisiana coast, as well as Weizhou 6-13 oil field, Penglai 19-3 oil field 1/3/8/9 comprehensive adjustment project, Dongfang 13-2 gas fields and Wenchang 9-2/9-3/10-3 gas fields in offshore China.
This year, the company plans to drill 132 exploration wells and acquire approximately 19,000 km2 3D seismic data. Hess's website says Stampede is expected to start producing this quarter and will have capacity to process 80,000 b/d oil.