CNOOC LIMITED 2015 Strategy Preview February 3, 2015
Outline Operating Environment and Strategy 2015 Operating Guidance Three-year Outlook 3
Oil Price Environment Oil prices have dropped more than 50% since 2H 2014 Forward prices remain at a low level Brent and WTI prices since 2014 Brent and WTI Forward Curve US/Bbl (US/Bbl) 120 100 110 80 100 90 60 80 70 40…
Operating Strategy Maintain prudent financial policy and investment decision Strengthen cost control, continue to improve quality and efficiency Ensure safe operation of producing projects Keep sanctioned projects on schedule on…
2015 Operating Guidance
2015 Overview Lower Capex by 26-35% from 2014 level 2015 Capex of RMB70-80 billion, down 26-35% from 2014E Exploration, development and production account for 21%, 67% and 10% respectively China and overseas account for 52% and 48%…
Capex Plan (RMB bn) 108.3 120 92.4 1.3 1.0 13.5 10.6 70-80 80 69.7 62.6 40 18.2 23.8 0 2013A 2014E 2015B Exploration Deveolpment Production Other 2015 Capex Plan Breakdown 2% 10% 21% Exploration Development China 48%…
Capital Spending Principles Prudent investment decision Focus on cash flow Balance short-term return and long-term development Continue to optimize asset portfolio and capital allocation 10
Exploration Exploration Capex of RMB14.7-16.8 bn, down 29-38% YoY Optimize exploration investment Ensure spending in our core area offshore China, representing two thirds of total exploration Capex Prioritize mature areas and rolling…
Exploration Program Exploration wells 2D Seismic (000 km) 3D Seismic (000 km2) 185 36 162 23 20 14 2014E 2015B 2014B 2015E 2014B 2015E Continue to prioritize exploration work and maintain reasonable spending level to…
Development and Production Development Capex of RMB46.9-53.6 bn, down 23-33% YoY Ensure investment in projects under construction, refine engineering plan Cautiously evaluate pre-sanction projects, concentrate resources on high-…
Strengthen Cost Control Enhance awareness of cost control Adjust workload based on return Continue to streamline and implement whole process management Further address health, safety and environmental protection management 14
Production Target (mmboe) 600 475-495 500 432 400 33% 32% 300 200 67% 68% 100 0 2014 Estimate 2015 Target China Overseas Our 2015 production target is 475-495 mmboe, among which, oil and gas account for 83% and…
New Projects in 2015 Peak Production Working Project Location Expected Startup (boe/d) Interests Commenced Jinzhou 9-3 oil field adjustment Bohai 12,000 100% production Bozhong 28/34 oil fields Bohai First half 30,000 100%…
Major Project BZ 28/34 Adjustment Located in Southern Bohai Bozhong 28/34 includes three producing fields: Bozhong 28-2S Bozhong 34-1 Bozhong 34-2/4 New producing facilities: One central platform and four wellhead platforms 79…
Major Project KL 10-1 Located in Southern Bohai Major producing facilities: One central platform and two wellhead platforms 70 producing wells Peak production: 36,000 bbl/day 18
2015: Operating Highlights Financial Management Maintain prudent financial policy Capex of RMB70-80 billion Development 7 new projects to come on stream Production Production target of 475-495 mmboe Exploration RRR 100%…
Three-year Rolling Target (mmboe) 600 513 509 475-495 500 432 33% 33% 34% 400 32% 300 200 67% 67% 66% 68% 100 0 2014 Estimate 2015 Target 2016 Target 2017 Target China Overseas 2016 and 2017 production will see…
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