CNOOC China says fossil fuels are crucial for the near future
CNOOC Ltd, a Chinese offshore oil and natural gas company, believes that fossil fuels will continue to be a stabilising force in the global energy market for a long time. The company has set a record production target for 2024.
CNOOC, after reporting a record-breaking interim profit, said that the state-run firm aimed to pump 700 to 720 millions barrels of oil by 2024 or 3% to 6 percent more than last year.
CNOOC's Chief Executive Zhou Xinhuai said that the company expects its domestic gas production to grow strongly through 2030. It is also ready to monetize Guyana's vast gas reserves.
Exxon Mobil, which leads the joint venture Stabroek off-shore Guyana, has found 11.6 billion barrels of oil and gas.
Zhou said that a recent award for Block 7 development in Iraq may lead to the discovery of a large new deposit, but first, Zhou noted, it will be necessary to conduct sufficient appraisals so as to fully understand its potential.
Zhou stated that "CNOOC will continue to maintain its high standards when selecting new assets around the world."
Zhou stated that the company will focus its efforts on new energy by investing in projects with the greatest cost advantage, such as the commissioning the first 5-megawatt offshore flue gas waste power plant.
CNOOC stated that it expects oil prices to remain in the $75-$85 range for the second half 2024. The company targets an annual capital spending of 125 billion to 135 billion dollars ($18 billion to $ 19 billion), up from last year's figure of 129.6.
The company's earnings of $11.2 billion, which were reported in the first half, were slightly lower than PetroChina's $12.4 billion, but higher than Sinopec's $5.2 billion. $1 = 7.942 Chinese Yuan Renminbi (Reporting and writing by Chen Aizhu, Colleen Waye and Liz Lee; Editing and reviewing by David Goodman, Clarence Fernandez).
(source: Reuters)
