CNOOC Limited Welcomes 2010 with Higher Production Growth and Robust CAPEX Investment

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Feb 02, 2010, 03:24 ET

HONG KONG, Feb. 2 /PRNewswire-Asia/ -- CNOOC Limited ("the Company" or "CNOOC Ltd,"NYSE: CEO; SEHK: 883) today announced its 2010 business strategy and development plan.

(Logo: http://www.prnasia.com/xprn/sa/200701301659.jpg )

The total targeted net production of the Company in 2010 is 275-290 million barrels of oil equivalent (BOE) (with WTI at US$75.0/barrel). The Company's net production for 2009 is estimated to be 226-228 million BOE (with WTI at US$62.0/barrel).

During the year, nine new projects are expected to come on stream, including major projects such as JinZhou 25-1 and BoZhong 19-4. These new projects are all located in offshore China and are expected to strongly support the Company's production growth in 2010. In the meantime, a mild decline rate on certain producing oilfields, achieved with the effective measures on enhanced oil recovery, is also expected to be an important driver for the production growth in 2010.

In order to maintain a sustainable growth, the Company will further enhance its exploration efforts in 2010. The Company's exploration activities will focus on: exploration of oil in core areas, natural gas exploration, and deep water exploration, with intensive exploration program including 98 exploration wells, 21,000 kilometers 2D seismic and 11,800 square kilometers 3D seismic. The Company aims to achieve a reserve replacement ratio (RRR) of over 100% in 2010.

In 2010, concentrating on production growth and intensive exploration program, the Company will budget a total capital expenditure of US$7.93 billion, representing an increase of 29.5% over the estimated capital expenditure of 2009. During the year, the Company's capital expenditures for exploration, development and production are expected to reach US$1.47 billion, US$4.81 billion, and US$1.50 billion, respectively.

"2010 will be a splendid year for the Company, especially for our production growth. While the operating cost for the energy sector keeps climbing up, we will continue to implement our low cost strategy to make a balance between achieving higher production growth and maintaining competitive cost advantage." Mr. Yang Hua, President & CFO of the Company commented.

Mr. Fu Chengyu, Chairman and Chief Executive Officer of the Company said," In 2010, we will stick to our established strategies and actively execute our development plan, to reward our shareholders with outstanding business performance for their confidence and support for the Company,"

Notes to Editors:

More information about the Company is available at http://www.cnoocltd.com .

This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "believe", "intend", "expect", "anticipate", "project", "estimate", "plan", "predict" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by us that we believe are reasonable under the circumstances. However, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance and financial condition to differ materially from our expectations. For a description of these and other risks and uncertainties, please see the documents we file from time to time with the United States Securities and Exchange Commission, including our 2008 Annual Report on Form 20-F filed on May 8, 2009.

    For further enquiries, please contact:

     Mr. Jiang Yongzhi
     Joint Company Secretary and General Manager
     of Investor Relations Department
     CNOOC Limited
     Tel:   +86-10-8452-1731
     Fax:   +86-10-8452-1441
     Email: [email protected]

     Ms. Sharon Fung
     Ketchum Newscan Public Relations Ltd
     Tel:   +852-3141-8082
     Fax:   +852-2510-8199
     Email: [email protected]

SOURCE CNOOC Limited