China National Offshore Oil Corporation (CNOOC) plans to ramp up spending by at least 40% in 2018 and raise production as a result of a more “suitable” oil price, the company said in a recent strategy presentation. Capital spending for 2018 is expected to range from between $11.1 billion and $12.7 billion, compared with about $7.6 billion in 2017. CNOOC forecast that net oil and gas production would rise to between 470 million BOE and 480 million BOE from approximately 469 million BOE last year. The production guidance was based on an average price of $53/bbl for Brent crude oil. Company 2019 and 2020 production forecasts are for 485 million BOE and 500 million BOE, respectively.
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