State-held Chinese offshore oil and gas producer CNOOC has outlined plans to invest between CNY70bn to CNY80bn (approximately US$10.3bn - US$11.8bn) on exploration and production activities, which is much higher than the CNY63bn (US$9.3bn) in capital spending set aside for 2018. The group intends to double its domestic exploration activities and proven oil and gas reserves over the next 7 years.
Exploratory drillings will make up 76% of the total exploration spendings (CNY12bn, i.e. US$1.8bn), while overseas activities will account for the remaining 24%. In particular, investment in the Stabroek block offshore Guyana, where a consortium led by ExxonMobil has tapped recoverable reserves of 5 Gboe, will be accelerated. In 2019, the company plans to commission six new projects, of which the Egina oilfield in Nigeria and the Huizhou 32-5 oilfield in the South China Sea.
CNOOC's domestic spendings will account for 62% of the total expenditures in 2019 (51% in 2018) and domestic production will account for 63% of its total 2019 output (65% in 2018).