China: CNOOC steps up exploration and global expansion

CNOOC is focusing on domestic exploration and expanding its international business, while moving cautiously ahead with the energy transition.

Share:

CNOOC expansion exploration 2024

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

China National Offshore Oil Corporation (CNOOC) will spend between 13 and 14 billion yuan annually on domestic exploration in the coming years, representing 68.2% of its exploration budget in 2023. This strategy aims to increase domestic reserves and production, underlining the importance of China’s offshore for the company. Recent major discoveries in the Bohai Sea and South China Sea, totalling over 733 million barrels, attest to the significant potential of these areas.

Offshore contributions and production growth

Offshore China, the main source of growth in the country’s crude production since 2020, continues to play a key role for CNOOC and China. In 2023, CNOOC’s domestic crude and liquids production grew by 6.6%, and its gas production by 12.3%, outstripping national growth, thanks in particular to ongoing investment and improved technology.

International expansion and cost strategy

In addition to its focus on domestic assets, CNOOC is exploring energy projects in Angola and maintaining a selective internationalization strategy. The company insists on keeping its total costs below $35/bbl, having succeeded in reducing its costs to $28.83/bbl by 2023. Cost discipline crucial to CNOOC’s competitiveness in the global market.

Committed to the energy transition

CNOOC aims to achieve peak carbon emissions by 2028 and carbon neutrality by 2050, while allocating 5-10% of its annual CAPEX to new energy sectors. As China’s leading developer of offshore wind energy and offshore carbon capture and utilization, CNOOC is also venturing into hydrogen.

With a rising CAPEX forecast for 2024, CNOOC plans to increase production to 1.95 million boe/day, with future projections even higher. This investment strategy aims to ensure sufficient reserves to support production growth until 2030, underlining CNOOC’s long-term expansion and efficiency objectives.

French steel tube manufacturer Vallourec has secured a strategic agreement with Petrobras, covering complete offshore well solutions from 2026 to 2029.
Increased output from Opec+ and non-member producers is expected to create a global oil surplus as early as 2025, putting pressure on crude prices, according to the International Energy Agency.
The Brazilian company expands its African footprint with a new offshore exploration stake, partnering with Shell and Galp to develop São Tomé and Príncipe’s Block 4.
A drone attack on a Bachneft oil facility in Ufa sparked a fire with no casualties, temporarily disrupting activity at one of Russia’s largest refineries.
The divide between the United States and the European Union over regulations on Russian oil exports to India is causing a drop in scheduled deliveries, as negotiation margins tighten between buyers and sellers.
Against market expectations, US commercial crude reserves surged due to a sharp drop in exports, only slightly affecting international prices.
Russia plans to ship 2.1 million barrels per day from its western ports in September, revising exports upward amid lower domestic demand following drone attacks on key refineries.
QatarEnergy obtained a 35% stake in the Nzombo block, located in deep waters off Congo, under a production sharing contract signed with the Congolese government.
Phillips 66 acquires Cenovus Energy’s remaining 50% in WRB Refining, strengthening its US market position with two major sites totalling 495,000 barrels per day.
Nigeria’s two main oil unions have halted loadings at the Dangote refinery, contesting the rollout of a private logistics fleet that could reshape the sector’s balance.
Reconnaissance Energy Africa Ltd. enters Gabonese offshore with a strategic contract on the Ngulu block, expanding its portfolio with immediate production potential and long-term development opportunities.
BW Energy has finalised a $365mn financing for the conversion of the Maromba FPSO offshore Brazil and signed a short-term lease for a drilling rig with Minsheng Financial Leasing.
Vantage Drilling has finalised a major commercial agreement for the deployment of the Platinum Explorer, with a 260-day offshore mission starting in Q1 2026.
Permex Petroleum has signed a non-binding memorandum of understanding with Chisos Ltd. for potential funding of up to $25mn to develop its oil assets in the Permian Basin.
OPEC+ begins a new phase of gradual production increases, starting to lift 1.65 million barrels/day of voluntary cuts after the early conclusion of a 2.2 million barrels/day phaseout.
Imperial Petroleum expanded its fleet to 19 vessels in the second quarter of 2025, while reporting a decline in revenue due to lower rates in the maritime oil market.
Eight OPEC+ members will meet to adjust their quotas as forecasts point to a global surplus of 3 million barrels per day by year-end.
Greek shipping companies are gradually withdrawing from transporting Russian crude as the European Union tightens compliance conditions on price caps.
A key station on the Stalnoy Kon pipeline, essential for transporting petroleum products between Belarus and Russia, was targeted in a drone strike carried out by Ukrainian forces in Bryansk Oblast.
SOMO is negotiating with ExxonMobil to secure storage and refining access in Singapore, aiming to strengthen Iraq’s position in expanding Asian markets.

Log in to read this article

You'll also have access to a selection of our best content.