OREANDA-NEWS. January 27, 2012. The state-run company said in a statement that it aimed to produce 330-340 million barrels of oil equivalent this year, compared with estimated output of 331 million to 332 million in 2011.

The company said its capital expenditure was expected to reach between USD 9.3 billion and USD 11 billion this year, compared with USD 8.77 billion forecast for 2011.

Exploration, development and production should account for about 17%, 68% and 14% of the budget, it said.

In August last year, the company lowered its 2011 output target from 355 million to 365 million barrels of oil equivalent to 331 million to 341 million because of the Bohai Bay oil spill and delays to an overseas acquisition.

The oil leak at the Penglai 19-3 field in eastern China, co-owned and operated by ConocoPhillips, led to total production losses of 62,000 barrels per day.

CNOOC said the expected output rise for this year would be supported by new projects.

"More ... projects are expected to come onstream in offshore China in the next few years and become an important driver of the company's future production growth," CNOOC said, adding that four new projects were expected to come onstream this year.

Chief executive Li Fanrong said that his company would still target 6-10% compound annual growth rates for production between 2011 and 2015, partly by pushing for deepwater exploration and development, Reuters reported.

Some of CNOOC's overseas projects, such as the Long Lake oil sands project in Canada and Missan oilfield in Iraq, are expected to deliver production contributions, CNOOC said, without giving details.

Chinese oil giants, including PetroChina and Sinopec, have invested heavily in natural resource projects overseas to fuel the country's surging economy.

CNOOC closed its USD 2 billion acquisition of Opti Canada in November, giving the Chinese company its second stake in a Canadian oil sands property. It also signed deal with US natural gas producer Chesapeake Energy Corp for a 33.3% stake in a shale project.

CNOOC said it has 16 projects under construction "which will lay a solid foundation for the company's mid- to long-term production growth."

This year, CNOOC plans to strengthen independent deepwater exploration, while expanding exploration in new areas and frontiers, the statement said.