Jan. 31, 2007 (China Knowledge) – CNOOC Ltd. <CEO><883> announced Monday that approximately 75% of its US$512 million exploration capital expenditure will be spent on opening up new oil fields.

Listing the company’s outlook for 2007, CNOOC says that it expects to begin five projects in 2007, with a total of more than 20 projects expected over the coming years. Major projects in China include the Penglai 19-3 phase II and Wenchang oil fields, while overseas projects include the Tangguh project and OML 130.

The company will also be concentrating on offshore exploration in mature areas, rolling exploration areas and frontier areas. Efforts in deepwater exploration will also be increased.

Along with the increase in exploration projects, CNOOC will also be expanding its budget in capital expenditure to US$3.65 billion, a 19% year-on-year increase.

In 2007, CNOOC is expecting to increase net production to 162 to 170 million barrels of oil equivalent (BOE). Net production in 2006 was 165 to 168 BOE.