Chinese energy giant CNOOC Ltd. is targeting an increase in production of up to 5.6 per cent in 2014, helped by its $15.1-billion (U.S.) takeover last year of Calgary-based Nexen Inc.
Beijing-based CNOOC said on Monday it expects to produce between 422 and 435 million barrels of oil equivalent this year, including about 69 million barrels from Nexen.
The company estimates its net production for 2013 at about 412 million barrels, including 61 million from Nexen.
CNOOC also said it anticipates capital spending this year to reach up to 120 billion yuan ($19.8-billion), with Nexen accounting for about 19 per cent of that.
The Chinese company says it is maintaining its production target of 6 to 10 per cent annual average production growth from 2011 to 2015.
CNOOC expects seven to 10 new projects to come on stream in 2014 and “a busy pipeline of engineering and construction with about 20 new projects under construction.”
The oil and gas company’s acquisition of Nexen was the single largest takeover by a Chinese firm; it was cleared after a lengthy review by the federal government.
Among Nexen’s assets are the Long Lake operation in the oil sands, but production has fallen short of full capacity of 72,000 barrels of bitumen per day.
The premium CNOOC paid for Nexen has weighed on CNOOC’s shares over the past year.