CNOOC's Oil and Gas Output to Reach 290 Million Barrels in 2010

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Researched by Industrial Info Resources (Sugar Land, Texas)--The oil and gas output of CNOOC Limited (NYSE:CEO) (Beijing), the listed flagship of China National Offshore Oil Corporation (CNOOC) (Beijing), is expected to reach 275 million to 290 million barrels equivalent in 2010, an increase of 21% to 28% year-over-year. This expected output is calculated based on the crude oil price index of $75 per barrel, while the output estimate for 2009 is corresponding to the crude oil price of $62 per barrel, according to the Operation Strategy and Development Plan 2010, announced by CNOOC Limited on February 2, 2010.

Together with the production plan, CNOOC Limited announced its investment plan for 2010. It's expected that CNOOC Limited's total capital expenditures will reach $7.93 billion, a year-over-year increase of about 29.5% compared with the investment in 2009, which is far beyond the market expectation. Among the top three oil companies in China, CNOOC is the only one with its production plan for 2010 announced. With the stimulation of this news, the closing price of CNOOC Limited jumped 9.41% to HK$12.32 on February3, 2010.

According to the announcement, CNOOC Limited's investment in exploration, development and production capitalization is expected to reach $1.47 billion, $4.81 billion and $1.5 billion, respectively, in 2010. It's expected that nine projects will begin operation in 2010, and all these projects are offshore, including major projects such as Jinzhou 25-1 and Bozhong 19-4. Together with those projects commissioned in 2009, these projects will provide powerful support to the growth of output in 2010. It's expected that the annual compound growth in output would reach 6% to 10%, from 2010 to 2015.

CNOOC will continue to perform its low-cost strategy to ensure better balancing between output improvement and the maintaining of the existing cost advantage for CNOOC, said Yang Hua, President of CNOOC Limited.

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