Chinese oil and gas production has released its 2018 results, posting a 1% growth in hydrocarbon production to 475 mboe. The 1.3% decline in crude oil and liquids production (to 383 mbl) was more than offset by a 12% increase in gas production to 530 bcf (15 bcm). 65% of the Group production was made in China and 35% overseas. The group benefited from much higher oil and gas prices (+28% for oil to US$67.2/bbl on average and +9.8% for gas to US$6.41/mcf), raising oil and gas sales by 22% to CNY186bn (US$27.7bn)
CNOOC made 17 new discoveries in 2018 in the Bohai Basin (6), in the eastern South China Sea (4), in the western South China Sea (2) and abroad (5 discoveries in the Stabroek block in Guyana). Among the Bohai discoveries, the Bozhong 19-6 gas field is estimated to hold more than 100 bcm of gas and 100 mcm of condensate; production could start in a pilot zone by the end of 2019. In addition, 17 oil and gas structures were successfully appraised during the year. Overall, the reserve replacement ratio reached 126% and the reserve life was extended to 10.5 years.
CNOOC expects to raise its production level to 480-490 mboe in 2019 (of which 37% outside China), to 505-515 mboe in 2020 (41% overseas) and to 535-545 mboe in 2021 (41% overseas).