China’s CNOOC Sets 2022 Output Target 10% above 2021 Goal

(OE) China’s biggest offshore oil and gas producer, CNOOC Ltd, on Tuesday set its 2022 production target at 600 million-610 million barrels of oil equivalent (boe), 10% above last year’s goal.

The company targeted output of 545 million-555 million boe in 2021, though it expects to have beaten that, churning out an estimated 570 million boe last year. It set its 2022 production goal last year at 590 million-600 million boe.

China has pledged to achieve peak carbon emissions https://www.reuters.com/business/cop/china-says-must-consider-supply-chain-food-energy-security-when-curbing-2021-10-24 by 2030 and carbon neutrality before 2060, but said energy security must be considered amid those efforts.

CNOOC is one of the industry’s lowest-cost explorers and producers, with all-in production costs at $28.98 per barrel as of the first half of 2021.

The company plans to hold its capital spending for 2022 steady from a year ago at 90 billion-100 billion yuan ($15.70 billion). That compares to a record set in 2014 of 105 billion-120 billion yuan.

The offshore specialist has become the largest contributor to the rise in domestic Chinese oil production, making up 80% of the total national increase in 2020, state media reported.

Its Bohai oil cluster off north China has overtaken Daqing to become the country’s biggest crude oil production base, with 2021 output hitting 30.132 million tonnes.

CNOOC’s first wholly-owned deepwater natural gas field, Lingshui 17-2 in the South China Sea, also hit its designed peak rate of 10 million cubic meters in November.

For 2022, the company plans to drill 227 offshore exploration wells and 132 onshore unconventional exploration wells.

It also expects to launch 13 new projects, including the Bozhong, Kenli and Enping oilfields in China, Liza Phase II in Guyana, and 3M in Indonesia.

CNOOC forecasts its net production in 2023 and 2024 will reach 640 million-650 million boe and 680 million-690 million boe respectively.

($1 = 6.3714 Chinese yuan renminbi) 

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