CNOOC (883) released its 2019 business strategy today. The net production target this year is 480 million to 490 million barrels of oil equivalent (BOE), of which, Chinese and overseas production accounts for 63% and 37% respectively. The company’s net output last year was 475 million BOE. The net production estimates for the years 2020 and 2021 are 505 million to 515 BOE and 535 million to 545 million BOE, respectively.

The total capital expenditure budget for this year is RMB 70 billion to 80 billion. Out of which, the capital expenditures for exploration, development and production are estimated to be 20%, 59%, and 19% respectively. This year, the company expects to initiate 6 projects, drill 170 exploration wells and acquire roughly 28 thousand square kilometers of 3D seismic data.