CNOOC to boost development budget
Oil and gas producer plans to allot 120b yuan for capital expenditure to meet production target
CNOOC, the mainland's biggest offshore oil and gas producer, plans to increase capital expenditure to between 105 billion yuan (HK$133.6 billion) and 120 billion yuan this year to improve exploration and development operations.
"In terms of US dollars, it is between US$17 billion and US$19 billion," said chief financial officer Zhong Hua, adding that the expenditure for last year was about US$12 billion.
The company said 65 per cent of the money would be pumped into development, 19 per cent into exploration and 14 per cent into production.
CNOOC reiterated the compound annual growth rate target for 2011-15 production of 6 to 10 per cent. It expects a busy pipeline of engineering and construction works, with about 20 new projects under construction this year.
Chief executive Li Fanrong said: "We have kept the growth target unchanged because we think the projects at hand are enough to help us meet the goal."
He added that the growth target was, however, subject to other elements such as government approval. "The government is stricter with examinations and approvals now than before," he said.