CNOOC announced its 2010 business strategy and development plan.
The total targeted net production of the Company in 2010 is 275-290 million barrels of oil equivalent (BOE) (with WTI at US $75.0/barrel). The Company's net production for 2009 is estimated to be 226-228 million BOE (with WTI at US $62.0/barrel).
During the year, nine new projects are expected to come on stream, including major projects such as JinZhou 25-1 and BoZhong 19-4. These new projects are all located in offshore China and are expected to strongly support the Company's production growth in 2010. In the meantime, a mild decline rate on certain producing oil fields, achieved with the effective measures on enhanced oil recovery, is also expected to be an important driver for the production growth in 2010.
In order to maintain a sustainable growth, the Company will further enhance its exploration efforts in 2010. The Company's exploration activities will focus on: exploration of oil in core areas, natural gas exploration, and deep water exploration, with intensive exploration program including 98 exploration wells, 21,000 kilometers 2D seismic and 11,800 square kilometers 3D seismic. The Company aims to achieve a reserve replacement ratio (RRR) of over 100% in 2010.
In 2010, concentrating on production growth and intensive exploration program, the Company will budget a total capital expenditure of US $7.93 billion, representing an increase of 29.5% over the estimated capital expenditure of 2009. During the year, the Company's capital expenditures for exploration, development and production are expected to reach US $1.47 billion, US $4.81 billion, and US $1.50 billion, respectively.
"2010 will be a splendid year for the Company, especially for our production growth. While the operating cost for the energy sector keeps climbing up, we will continue to implement our low cost strategy to make a balance between achieving higher production growth and maintaining competitive cost advantage," Mr. Yang Hua, President & CFO of the Company commented.
Mr. Fu Chengyu, Chairman and Chief Executive Officer of the Company said," In 2010, we will stick to our established strategies and actively execute our development plan, to reward our shareholders with outstanding business performance for their confidence and support for the Company."
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