Oil producer targets an increase of 8pc to 12pc in production, but says offshore development will be the growth driver
CNOOC, the mainland's dominant offshore oil producer, plans to increase oil and gas production by 8 per cent to 12 per cent a year between 2005 and 2010, with the development of offshore reserves being the main growth driver due to falling output from existing fields.
Speaking to the press yesterday for the first time since becoming chairman of CNOOC last month, Fu Chengyu said the growth target was respectable by international standards, although lower than the 15 per cent annual rate estimated for 2000 to 2005.
'Fifteen per cent annual growth from 2000 to 2005 is exceptional ... as our company's scale grows bigger year after year, it is not as easy to maintain the same growth rate,' he said.
According to the company's projections, about half its production in 2010 will come from the development of existing reserves, while new reserve discoveries will account for 23 per cent. The contribution from already announced overseas acquisitions will be about 9 per cent.
Mr Fu said the company was on track to reach this year's oil and gas production target of 134 million to 138 million barrels of oil equivalent (boe), despite a 7.5 per cent year-on-year decline in production in the third quarter.
Production increased from 87 million boe in 2000 to 96 million boe in 2001 and 127 million boe last year, but with growth slowing, CNOOC expects to produce about 145 million boe next year.