China’s state-owned oil and gas giant, CNOOC, has decided to keep its capital expenditure unchanged this year compared to 2024. This decision comes alongside a reduction in its oil and gas production growth target, although the company still expects to set new annual production records moving forward.
On Wednesday, CNOOC, known for its offshore oil and gas operations both in China and abroad, announced that its net oil and gas production for 2024 is projected to reach around 720 million barrels of oil equivalent (boe), marking a sixth consecutive year of record-high output.
The company’s capital expenditure will remain consistent with 2024, amounting to between $17.2 billion (125 billion Chinese yuan) and $18.6 billion (135 billion yuan) for 2025, according to CNOOC’s 2025 Business Strategy and Development Plan. In comparison, capital expenditure for 2024 stood at $18.2 billion (132 billion yuan).
For 2025, CNOOC plans to direct its capital expenditure in China mainly toward maintaining crude oil reserves and expanding natural gas reserves. This will include the development of three gas regions with an estimated capacity of three trillion cubic meters, in line with China’s directive for state-owned companies to boost domestic oil and gas reserves.
Although CNOOC has revised its production targets for 2025-2027 downward from previous projections made last year, it still expects its oil and gas production to reach new records each year through 2027.
For 2025, the new net production target is set at 760 million to 780 million boe, with about 69% coming from China and 31% from international operations. This is slightly lower than the previous forecast of 780 million to 800 million boe.
The 2026 production target has also been lowered to between 780 million and 800 million boe, down from the earlier estimate of 810 million to 830 million boe. The original target range of 810 million to 830 million boe is now set for 2027.
The revision in targets is partly due to CNOOC’s sale of some Gulf of Mexico assets to Ineos, announced in December. CNOOC’s CEO, Zhou Xinhuai, addressed analysts on the matter, explaining the impact of the asset sale on the company’s production outlook.
Related Topics:
- OPEC Forecasts Strong Oil Demand Growth for 2025 and 2026
- US Sanctions and Arctic Weather Drive Oil Prices Higher, Pressuring Tanker Markets
- US Energy Agency Increases Crude Oil Price Forecasts for 2025