On Thursday, CNOOC Limited announced its business strategy and development plan for 2024, forecasting a rise in production. The company intends to maintain a robust growth of production volume corresponding with the steady increase in global oil and gas demands.
For 2024, CNOOC anticipates a net production target of 700 million to 720 million barrels of oil equivalent (BOE). Approximately 69% of this production will be sourced from China, with the remaining 31% derived from overseas operations. The company estimates a net production of around 675 million BOE for 2023. Additionally, CNOOC projects a net production target of 780 million to 800 million BOE in 2025, and 810 million to 830 million BOE in 2026.
The growth in production is attributed to a strong pipeline of new projects backed by considerable capital investment. The total capital expenditure allocated for 2024 ranges from RMB 125 billion to RMB 135 billion. The division of these funds will be approximately 16% for exploration, 63% for development, and 19% for production. For 2023, the company expects to record capital expenditures of roughly RMB 128 billion.
In 2024, CNOOC plans to maintain a high level of exploration activity and to bring multiple high-quality projects online. The company will accelerate the adoption of green energy substitutions, and anticipates green electricity consumption to surpass 700 million kWh in 2024.
CNOOC also announced that, subject to shareholders' approval, the annual payout ratio from 2022 to 2024 will be at least 40%, with the absolute dividend expected to be no less than HK$ 0.70/share.
"We will implement three key programs focusing on increasing reserves and production, technological innovation, and green development. We will also continue to enhance quality and efficiency," stated Zhou Xinhuai, CEO and President of CNOOC.
In recent trading in Hong Kong, CNOOC shares closed at HK$14.44, marking a 4.8% increase.
