CNOOC to cut 2020 investment by 10 – 15%

Published by Nicholas Woodroof, Editor
Oilfield Technology, Wednesday, 08 April 2020 11:00

As reported by Reuters, CNOOC has said in a statement that it will trim annual investment by 10% to 15% in 2020, while maintaining its goal of increasing domestic crude oil and natural gas production for the year.

CNOOC announced in March that it would cut CAPEX and lower targets for oil and gas output in 2020.

The company did not give any further details on its CAPEX plan or on its oil and gas production targets for its domestic and overseas blocks.

It will cut total costs by a least 10% and reduce losses at its money-losing firms by 5 billion yuan (US$710 million) in 2020, the statement said.

The company did not give details on the unprofitable businesses. One of its big loss-makers, however, is its gas and power unit, and the company said in March it is set to have its Hong Kong-listed flagship take over that sector.

CAPEX at the Hong Kong-listed firm was 79.6 billion yuan in 2019.

The company said in January it would raise 2020 production to 525 million boe at both domestic and overseas projects from 506.5 million bbl in 2019. The focus would be on raising domestic output while cutting overseas operations, it said.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/08042020/cnooc-to-cut-2020-investment-by-10-15/