The China National Offshore Oil Company Limited (CNOOC Ltd.) said on Tuesday that its crude oil and natural gas output would grow up to 17.8 percent this year as 10 new projects started operations.
CNOOC Ltd. expected net production to hit 195-199 million barrels of oil equivalent (BOE) in 2008, compared with the estimated output of 169-171 million BOE in 2007.
Incorporated in Hong Kong, the company is the listed unit of the country's third largest oil producer, China National Offshore Oil Corp. (CNOOC).
Ten new projects were likely to come on stream this year, including major offshore China projects such as platforms B, D and E of Penglai 19-3 phase II, the Wenchang oilfields and Xijiang 23-1, it noted.
The oil giant said that it would focus its exploration on fields offshore and work with partners to explore deepwater blocks. It expected to achieve a reserve replacement ratio of more than 100 percent in 2008.
It would spend 1.04 billion U.S. dollars of the estimated 5.24 billion U.S. dollars in total capital expenditure on exploration this year. The total expenditure represented an increase of 43.7 percent from last year.
Fu Chengyu, chairman and chief executive officer, said, "For the oil producer, 2008 is a new exciting year with rapid growth in production. I am confident the new projects and active exploration and development programs will further optimize the quality and quantity of our assets."
CNOOC would take advantage of high global oil prices to speed up operations and maintain financial discipline in the face of rising costs, Yang Hua, executive vice president and chief financial officer, said.
(Xinhua News Agency January 30, 2008)