CNOOC looks to unconventional oil and gas to increase production
CNOOC Ltd., (883) China's largest offshore oil and gas producer, said Wednesday that it aims to produce 330-340 million barrels of oil equivalent in 2012, up from an estimated output of 331-332 million barrels last year.
China National Offshore Oil Corporation (CNOOC Group Chinese: 中国海洋石油总公司 Pinyin: Zhōngguó Háiyáng Shíyóu Zǒnggōngsī) plans to increase output by starting new deepwater fields, buying assets and accelerating development of unconventional energy resources.
The company currently has 16 projects under construction, of which, four projects will commence operations this year.
Chief Executive Officer Li Fanrong said in the statement that the company will strengthen independent deep-water exploration to achieve the target of 6-10-percent compound annual growth between 2011 and 2015.
CNOOC's capital expenditure is estimated at 9.3-11 billion U.S. dollars this year. The capital will be used for deep-water exploration and unconventional energy exploration.
Cnooc relies on fields off the Chinese coast for 80 percent of its production, slashed its output goal after oil leaks shut the country’s biggest field and it failed to complete an acquisition in Argentina.
To boost reserves, the company has bid for at least $7.8 billion of overseas assets since 2010, including shale-gas and oil-sand acreages in North America.
CNOOC's shares closed 0.9 percent higher in Hong Kong on Wednesday.
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