China National Offshore Oil Corporation (CNOOC) has announced that it aims to double its exploration projects and proven oil and gas reserves in seven years by 2025.
The company’s latest plan comes after China President Xi Jinping’s called for an increase in domestic production and reserves, as well as improvement in the country’s national security last year.
According to CNOOC’s chairman Yang Hua, the company is expected to make a significant investment to enhance exploration projects.
Details pertaining to CNOOC’s production target and capital expenditure are expected to be released at the strategic outlook meeting set to take place on 23 January.
CNOOC head geologist Xie Yuhong said: “We faced adverse geological conditions as offshore oil and gas fields age.
“More exploration projects are being moved to deepwater areas, but these are both risky and costly.”
By the end of 2017, the company reported 2.613 billion barrels of oil equivalent in net total reserves.
In a separate development, CNOOC has announced the start of production from Huizhou 32-5 oilfield comprehensive adjustment/Huizhou 33-1 oilfield joint development project in south-central part of the eastern South China Sea.
The project is located 170km from Hong Kong, with a water depth of 115m.
The project completely used the existing facilities of the Huizhou 25-8 oilfield and has also built one drilling and production platform.
There is currently one well producing. The project is expected to reach its peak production of 19,200 barrels of crude oil a day next year.
CNOOC acts as the operator and holds a 100% interest in the Huizhou 32-5 oilfield comprehensive adjustment/Huizhou 33-1 oilfield joint development project.