Sun. Jun 23rd, 2024

CNOOC to Increase Oil and Gas Production, Exploration, Asset Development in 2024

On Jan. 25, CNOOC Limited announced its business strategy and development plan for the year 2024.

According to a company statement, CNOOC will continue to increase reserves and production, focus on investment efficiency, and maintain a reasonable capex structure. Additionally, CNOOC plans to steadily promote the integrated development of new energy and oil and gas businesses in 2024.

Increasing reserves and production. As global oil and gas demands steadily grow, the company continues to increase reserves and production, and maintains strong growth of production volume.

In 2024, net production target is 700 MMboe to 720 MMboe, of which production from China and overseas accounts for approximately 69% and 31%, respectively.

The net production target is 780 MMboe to 800 MMboe in 2025, and 810 MMboe to 830 MMboe in 2026.

In 2023, net production is estimated to be approximately 675 MMboe, setting record highs for five consecutive years.

Exploration. CNOOC will continue exploration activities for large and medium-sized oil and gas fields, and continue to strengthen the resource base for increasing reserves and production.

In 2024, the exploration workload will remain at a high level. The company will increase its efforts in natural gas exploration and push forward the construction of three trillion-cubic-meters-level gas regions, in the South China Sea, the Bohai Sea and onshore China, respectively.

In 2023, the company made new exploration discoveries with proved in-place volume of over 100-million-tons BOE in the Bohai Sea and deepwater South China Sea, realizing new discovery of 100-million-tons in-place volume for five consecutive year.

In 2024, multiple high-quality projects will be brought on stream. Major projects in China include Suizhong 36-1/Luda 5-2 Oilfield Secondary Adjustment and Development Project, Bozhong 19-2 Oilfield Development Project, Shenhai-1 Phase II Natural Gas Development Project, Huizhou 26-6 Oilfield Development Project and Shenfu Deep-play Coalbed Methane Exploration and Development Demonstration Project. Overseas, projects such as Mero-3 Project in Brazil will strongly support production growth.

Digital transformation. CNOOC will continue to lever technological innovation to sustain reserves and production growth, and to empower the company’s high-quality development. Key technologies for deepwater exploration, and for sustaining and increasing volume from producing oil fields, have been continuously improved.

Additionally, CNOOC will continue to build intelligent oil and gas fields, establish technology system, refine digital scenarios, accelerate the construction of unmanned and semi-unmanned offshore platforms, and speed up the installation of typhoon mode.

Sustainability. CNOOC will pursue green development and explore the industrialization of CCS/CCUS technologies. Comprehensive assessment of storage potential offshore China has been carried out. An offshore CCUS demonstration center in northern China, relying on Bozhong 19-6 gas field, has also been planned.

The company plans to develop differentiated advantages in deep-sea wind power generation, and vigorously promotes the integrated development of offshore wind power and oil and gas production. Green power substitution will be expedited, and green electricity consumption is expected to exceed 700 million kWh in 2024.

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