Chinese state-held oil and gas giant CNOOC is keeping its capital expenditure flat this year compared to 2024 as it lowered its oil and gas production growth target, although it still expects annual output records going forward.
CNOOC, which specializes in offshore oil and gas developments in China and internationally, said on Wednesday that its net oil and gas production was about 720 million barrels of oil equivalent (boe) for 2024—setting a record high for the sixth consecutive year.
The company’s capital expenditure will remain flat this year compared to 2024. In 2025, the total capital expenditure is budgeted at $17.2 billion (125 billion Chinese yuan) to $18.6 billion (135 billion yuan), CNOOC said in its 2025 Business Strategy and Development Plan.
Capex was $18.2 billion (132 billion yuan) in 2024.
In 2025, the capital expenditure for exploration in China will mainly be directed to sustain crude oil reserves while expanding natural gas reserves, led by the construction of the three trillion-cubic-meters-level gas regions, CNOOC said, as it continues to follow China’s directive to state majors to boost domestic oil and gas reserves and supply.
Despite the fact that the production targets for 2025-2027 are now lower than the previous goals communicated to the market a year ago, CNOOC continues to expect its oil and gas production to keep setting all-time high annual records in the period through 2027.
The net production target for this year is 760 million to 780 million boe, of which, the production from China and overseas accounts for approximately 69% and 31%, respectively. That’s lower than the previous target for 780 million to 800 million boe for 2025.
The new production guidance for 2026 is now between 780 million and 800 million boe in 2026, down from 810 million to 830 million boe, which the company guided last year.
The 810 million to 830 million boe target is now set for 2027.
The lowered guidance was partially due to the sale of some assets in the Gulf of Mexico to Ineos announced in December, CNOOC chief executive Zhou Xinhuai told analysts today.
By Charles Kennedy for Oilprice.com