Chinese energy giant CNOOC plans big rise in capex and production spending
Beijing — Chinese offshore oil and gas company CNOOC said on Thursday it planned to ramp up spending by at least 40% in 2018 and to raise production thanks to a more "suitable" oil price. The company, the listed upstream arm of state-owned China National Offshore Oil Corporation, said in a strategy presentation that it had pegged 2018’s capital expenditure (capex) at 70-billion to 80-billion yuan ($11.1bn-$12.7bn). It also forecast that net oil and gas output would rise to between 470-million and 480-million barrels of oil equivalent (boe) from an expected 469-million boe in 2017. CNOOC undershot its 60-billion to 70-billion yuan capex guidance for 2017 by a long way, with actual expenditure estimated to have come in at 50-billion yuan. There were many factors behind the lower spend, a CNOOC official said in Hong Kong, including the postponement of some projects and good cost control. Like its global peers, CNOOC responded to the oil price collapse from mid-2014 with three years of ...
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