China National Offshore Oil Corporation (CNOOC) has announced plans to spend between CNY70bn to CNY80bn ($10.3bn to $11.8bn) on exploration and production, as part of its business strategy and development plan for this year.

For this year, the company’s is targeting net production of 480 million to 490 million barrels of oil equivalent (Mboe).

Production from China and overseas will respectively account for 63% and 37% of the total production.

For 2020, CNOOC expects its net production to be 505Mboe to 515Mboe, and 535Mboe to 545Mboe for 2021.

“The company will maintain its prudent financial policy and investment decision-making.”

CNOOC CFO Xie Weizhi said: “The company will maintain its prudent financial policy and investment decision-making, and ensure the effective implementation of the capital expenditure plan to improve the overall performance of the company.”

This year, the company plans to start operations of six new projects.

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Nigeria’s Egina oil field and Huizhou 32-5 oil field in the South China Sea have already started production.

The Appomattox project in the US Gulf of Mexico, Bozhong 34-9 oil field, Caofeidian 11-1/11-6 project and Wenchang 13-2 project offshore China are set to begin production this year.

As part of its development plan, CNOOC will also drill 173 exploration wells and acquire 28,000km² of 3D seismic data.

The company recently said it plans to double its exploration projects and proven oil and gas reserves by 2025.

The plan is in response to China President Xi Jinping’s call for an increase in domestic production and reserves.