CNOOC's Business Plan Shows Up to $13.8 Billion in Expenses

Binwei Wang
    Jan 13, 2020 4:05 PM  PT
CNOOC's Business Plan Shows Up to $13.8 Billion in Expenses
author: Binwei Wang   

CNOOC Ltd. (NYSE: CEO) China's giant state-owned energy company, reported its business strategy and development plan for the year 2020.

The Hong Kong-based company is targeting net production for 2020 at 520 million to 530 million barrels of oil. China production would account for 64%, according to the announcement.

The total capital expenditure for 2020 is budgeted at $12.3 billion to $13.8 billion. CNOOC said it expects to spend 20% on exploration, 58% on development, 20% on production and 2% for other purposes.

The company plans to drill 227 exploration wells and collect approximately 27 thousand square kilometers of 3D seismic data this year.

Weizhi Xie, the chief financial officer of CNOOC, said in the announcement, "The company will continue to maintain cost competitiveness, maintain prudent investment decision-making, and ensure the effective implementation of the capital expenditure plan to fully promote the Company to a new phase of high-quality development."

The stock of CNOOC closed up nearly 4% on Monday, at $180.77 per share.