State-owned China National Offshore Oil Company (CNOOC) revealed plans to double its exploration activities and proven oil and gas reserves in China over the next seven years, a target that will see the oil firm expedite capital spending.
This announcement comes after President Xi Jinping’s call in August to improve national security by boosting domestic production and reserves, Reuters reported.
According to energy consultant Wood Mackenzie, CNOOC will be able to double its natural gas reserves over the period as its current reserve base is small, but it will be a challenge to deliver on oil due to lack of sizeable discoveries in the pipeline and relatively higher reserve base on oil.
Namely, several large oil discoveries to the size of Lingshui will be required to achieve higher investment commitments, Angus Rodger, Woodmac’s research director for Asia-Pacific upstream business, explained to Reuters.
As its shallow-water basins mature, CNOOC will increasingly shift focus to deepwater exploration.
Last month, CNOOC Ltd Chairman Yang Hua was quoted as saying that the firm would make a record investment in the next few years to boost exploration projects and reach its target.
The offshore oil and gas explorer reported 2.613 billion barrels of oil equivalent in net total reserves by 2017-end, the best seen since 2008.
In 2018, CNOOC Ltd made several domestic discoveries such as Bozhong 19-6 and Bozhong 29-6, both in the Bohai Bay area off north China.
