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Chinese giant CNOOC intensifies oil and gas production and expands natural gas exploration, maintaining a focus on energy transition. Replaces traditional energy with green sources to reduce carbon footprint.
The company CNOOC is preparing to achieve a series of ambitious goals in the coming years, according to its Business Strategy and Development Plan for 2024. In response to increased demand for energy, the Chinese oil and gas giant aims to increase production of oil and gas, strengthen its hydrocarbon reserves and expand its natural gas exploration activities, while continuing its transition to renewable and low-carbon energy through the development of green sources such as offshore wind power and Oil and Gas.
A CNOOC Limited, also known as the Chinese giant of oil and gas, is outlining ambitious plans for the coming years. In addition to expanding its natural gas exploration operations, the company aims to reinforce its hydrocarbon reserves and increase oil and gas production to meet growing energy demand. Additionally, the company is focused on its transition to renewable and low-carbon energy, such as offshore wind, as part of its 2024 business development strategy.
CNOOC Limited: Development Strategy and Production Targets
The summary of CNOOC's business strategy and development plan for 2024 shows the company's determination to continue increasing reserves and production. Therefore, the net production target of the company is 700 million to 720 million barrels of oil equivalent (boe) in 2024, with production from China and abroad accounting for approximately 69% and 31%, respectively.
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Renewable energy e Integrated Development
Additionally, CNOOC's net production target is 780 million to 800 million boe in 2025 and 810 million to 830 million boe in 2026. Net production for 2023 is estimated at about 675 million boe, setting records for five consecutive years. The company states that its production growth can be attributed to a strong pipeline of new projects and capital investments enough.
Chinese Giant: Investments and Production Projections
Zhou Xinhuai, CEO and President of CNOOC, commented: 'Next year, CNOOC Limited will aim high while keeping its feet on the ground. We will implement the three main programs to increase reserves and production, tecnologic innovation and green development, and we will move forward with the initiative to improve quality and efficiency, so as to lay a solid foundation for development and improve value creation capacity.'
Hydrocarbon Reserves and International Expansion
While the Chinese giant's total capital expenditure for 2024 is budgeted at 125 billion RMB (nearly US$17,63 billion) to 135 billion RMB (over US$19 billion), capital expenditure for exploration, development and Production will represent approximately 16%, 63% and 19% of the total, respectively. The company is expected to record capital expenditures of around 128 billion RMB (over US$18 billion) to 2023.
CNOOC: Gas Exploration and New Projects
As CNOOC will continue to strive to pursue fields of Oil and Gas large and medium-sized companies and strengthen the resource base to increase reserves and production, the exploration workload is expected to remain at a high level in 2024. In line with this, the Chinese company will intensify its efforts in exploration of natural gas and will boost the construction of three trillion cubic meter gas regions in the South China Sea, Bohai Sea and onshore China, respectively.
CNOOC Project: Development and International Expansion
Last year, the company made new exploration discoveries with a proven local volume of more than 100 million tons boe in the Bohai Sea and the deep waters of the South China Sea, realizing a discovery of 100 million tons of local volume for five consecutive years. During 2024, several high-quality projects are expected to be put into operation.
Sustainable Development: Key Projects and Technologies
Some of CNOOC's key projects to be launched in China include the secondary development and tuning project of oil fields Suizhong 36-1/Luda 5-2, the oilfield development project Bozhong 19-2 , natural gas development project Shenhai-1 Phase II, oilfield development project Huizhou 26-6 and deep coalbed methane exploration and development Shenfu demonstration project.
Technological Innovation: Exploration and International Development
When it comes to its projects abroad, the company highlighted the project Merry 3 in Brazil as a strong supporter of production growth. CNOOC is committed to leveraging technological innovation to sustain reserves and production growth and enable high-quality development with key technologies for deepwater exploration, along with ways to sustain and increase oilfield production volume .
Carbon Footprint Reduction and Renewable Energy
While building smart oil and gas fields, establishing technological systems, refining digital landscapes, accelerating the construction of unmanned and semi-manned offshore platforms, and accelerating the installation of typhoon mode, the Chinese company also pursues green development and exploring the industrialization of CCS/CCUS technologies.
Green Development and Sustainability
With the role of CCUS in reducing the carbon footprint of operations at the forefront, a comprehensive assessment of China's offshore storage potential was carried out while a CCUS offshore demonstration center in northern China, relying on the Bozhong 19- 6, is also planned.
CNOOC explains that it strives to develop differentiated advantages in offshore wind energy generation and promotes the integrated development of offshore wind energy and oil and gas production. Therefore, the company's green energy substitution will be accelerated and it is expected that the consumption of green electricity exceed 700 million kWh in 2024.
Ongoing Projects and Production Expansion
In early January 2024, CNOOC started production of a Phase II oilfield development project in the South China Sea. The company also brought several new projects online in 2023. In November 2023, the company started production of a Phase I development project of a gas condensate field in the Bohai Sea.
A few weeks before that, the Chinese giant started production of an oil field in the Bohai Sea. Before that, CNOOC started production from another oil field, albeit in the South China Sea.
Source: © OFF Shore Energy
