China National Offshore Oil Corporation (CNOOC), which is one of the largest oil companies, is planning to increase its capital expenditure to $15 billion, a seven-year high, media reports said. This is attributed to a 5 percent increase in domestic output. The company announced as part of its 2021 strategy outlook. It also wants to increase production by 7 percent in the next couple of years.
While other oil and gas majors are cutting short their investments or are investing cautiously, CNOOC remains committed to its goals despite the coronavirus pandemic. It is reported that CNOOC will invest to boost domestic oil and gas exploration and production, which last year hit 528 million barrels of oil equivalent.
The oil company recently launched production at a new field in the Eastern South China Sea. According to CNOOC, the oilfield could produce 72,800 barrels daily by 2022. It’s noteworthy that the Eastern South China Sea is one of CNOOC’s most important crude oil and natural gas producing areas.
Last year, it was reported that Chinese state-owned China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) are interested in ExxonMobil’s operating stake in the West Qurna 1 oil fields in Iraq. West Qurna 1 is one of the largest oil fields in Iraq. Exxon owns a 32.7 percent stake in the Exxon oil field and it could be worth $500 million. Previously, Exxon sold 25 percent of its stake in the oil field to PetroChina and 10 percent to Pertamina.