CNOOC Outlines Business Strategy, Development Plans for 2014

Adverse weather conditions in the South China Sea – which is a focal point of CNOOC’s production activities – and delays in construction and government approvals resulted in first production for some projects being delayed until 2014, Tony Liu, an analyst at Hong Kong-based Bocom International Securities Ltd. told Rigzone.

One of the affected developments is the Liwan gas project in Block 29/26 in the South China Sea, which is now over 95 percent complete, operator Husky Energy revealed in an update on the firm’s operations last month.

CNOOC’s Plans for 2014

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CNOOC intends to bring on stream 7 to 10 new projects, located mostly offshore China, in 2014. These include four – Wenchang 13-6, Panyu 10-2/5/8, Panyu 34-1/35-1/35-2 and Qinghuangdao 32-6 adjustment – in the second half of 2014; two, comprising Enping 24-2 in South China Sea and Golden Eagle in the North Sea, United Kingdom, at the end of the year; and Kenli 3-2 off Bohai, China in the first half.

The company indicated that peak production from the Kenli, Qinghuangdao, Enping and Golden Eagle projects will add 183,000 barrels of oil equivalent per day (boepd).

To support production growth, CNOOC hopes to bring around 20 new developments, now under construction, on stream in 2015. They include projects located in Chinese waters like the Bozhong 28/34 adjustment, Kenli 10-1, Huizhou 25-8 and Dongfang 1-1 Phase 1 adjustment.

The company’s “production has to grow by 20 percent in 2015 to meet the five-year [2011 to 2015] growth target. I think they can make it … capex is increasing significantly,” Liu told Rigzone.

CNOOC will strengthen overall efforts to ensure sustainable production growth into the future through greater investment in exploration. The firm will drill about 155 exploration wells this year, up from 132 estimated for 2013.


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