Chinese state oil and gas company CNOOC has set its 2025 production target at a record high, between 5.6% and 8.3% above 2024’s output.
The offshore oil and gas specialist pumped about 720 million barrels of oil equivalent (boe) in 2024, meeting the high end of its target, CNOOC said in a statement outlining its annual strategic outlook on Wednesday.
That was up 6.7% from 2023’s 675 million boe.
CNOOC said it was targeting net production at between 760 million and 780 million boe for 2025, and 780 million to 800 million boe for 2026.
That is slightly lower than the company’s guidance a year ago for 780 million to 800 million boe for 2025 and 810 million to 830 million boe in 2026.
Under the latest guidance, the goal for 2027 is 810-830 million boe.
Chief Executive Officer Zhou Xinhuai told analysts and reporters in Hong Kong that the tweak partly reflected the company’s divestment of Gulf of Mexico assets announced in December.
CNOOC aims to maintain a “prudent and stable” production plan after years of strong growth, Zhou added.
For this year’s production, offshore China and overseas will account for about 69% and 31% respectively, CNOOC said.
The company plans capital spending of between 125 billion yuan and 135 billion yuan ($17-19 billion) this year, versus last year’s estimated 132 billion yuan, an all-time high.
New domestic production this year will come from Bozhong 26-6 Oilfield Phase I and Kenli 10-2 Oilfield Phase I, both in Bohai Bay off north China, China’s largest oil producing region.
Globally, new production will flow from projects such as Yellowtail in Guyana and Buzios7 in Brazil.
CNOOC said it would maintain an annual dividend payout ratio of no less than 45% of earnings from 2025 to 2027.
Separately, Zhou said new U.S. President Donald Trump’s government was set to bring a lot of uncertainty to global energy markets.
There was unlikely to be an immediate big increase in U.S. shale oil production, despite Trump’s campaign to accelerate drilling, Zhou added.
(Reporting by Chen Aizhu. Editing by Eileen Soreng and Mark Potter)