China National Offshore Oil Corp. (CNOOC) has raised its year-to-date domestic gas production to 311.3 billion cubic feet (bcf), up from 250.6 bcf, in a first step towards making gas account for half of CNOOC’s total output by 2035. Two sizable fields, Lingshui 17-2 and Bozhong are due to come onstream.
Natural gas currently makes up 21% and oil 97% of CNOOC’s production. Looking ahead, the Chinese state oil company will increase its gas production by bringing two sizable fields onstream: the Lingshui 17-2 deepwater project in the South China Sea, slated for start-up in the second half of 2021, and the newly started Bozhong condensate gas field.
Third-quarter revenue fell as low oil prices overrode the effect of increased production , chief financial officer Xie Weizhi when presenting third-quarter results. Revenue plunged 26.8% on year to 35.55 billion yuan ($5.32 billion), as realised oil prices fell 29% to $43.03 per barrel. In contrast, gas prices notched up 2% to $5.85 per thousand cubic feet as China’s regulated gas prices are insulated against adverse effects from weak international oil prices.
“In the third quarter, the company continued to promote cost controls while enhancing quality and efficiency. As a result, our production performance was in line with the annual target,” said said Xu Keqiang, CNOOC Chief Executive. He added that CNOOC would be accelerating natural gas exploration and production both in China and overseas as China itself also reforms its shipment methods to allow more third-party access to the domestic market.
CNOOC is also an LNG import capacity holder at nine regasification terminals, which mostly lie south of Shanghai, where it has capacity at one facility.
