CNOOC Announce 2021 Business Strategy and Development Plan

In the extremely challenging year of 2020, under the leadership of the Board of Directors, the Company’s management, together with all staff, overcame the huge impact from low oil price and the pandemic of COVID-19. During the period, while strictly implementing pandemic prevention and control measures, the Company invested great efforts in growing its oil and gas reserves and production, further reduced costs and enhanced efficiency, promoted reform and innovation, and ensured the safety in production. Thanks to all these measures, the Company’s net production hit a record high of approximately 528 million barrels of oil equivalent (BOE) in 2020.

In 2021, the Company will continue its efforts in strengthening its resources base with targeted net production of 545-555 million BOE, of which, production from China and overseas account for approximately 68% and 32%, respectively. It also plans to drill 217 exploration wells and collect approximately 17 thousand square kilometers 3-Dimensional (3D) seismic data. 19 new projects are expected to come on stream, which mainly include Lingshui 17-2 gas fields development, Lufeng oil fields regional development, Caofeidian 6-4 oil field in offshore China, Buzzard oil field phase II in the UK and Mero I oil field in Brazil.

The Company’s total capital expenditure for 2021 is budgeted at RMB90 billion to RMB100 billion. The capital expenditures for exploration, development and production will account for approximately 17%, 61% and 20% of the total capital expenditure, respectively.

The Company’s net production for 2022 and 2023 are estimated to be 590-600 million BOE and 640-650 million BOE, respectively.

Mr. Xu Keqiang, CEO of the Company, said, “In 2021, under the theme of high-quality development, the Company will be committed to steadily increasing its oil and gas reserves and production, focusing on investment efficiency, maintaining its cost competitiveness, while actively pursuing the concept of green and low-carbon development, to create excellent returns for our shareholders.”

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Press release by: CNOOC Limited