CNOOC Limited Announces Its 2024 Business Strategy and Development Plan
- Net production targets set for 2024, 2025, and 2026, showing strong growth projections.
- Focused investment efficiency and prudent capital expenditure plans for sustainable development.
- Increased efforts in natural gas exploration and technological innovation for sustaining reserves and production growth.
- Emphasis on green development, including the industrialization of CCS/CCUS technologies and offshore wind power generation.
- Commitment to rewarding shareholders with an annual payout ratio of no less than 40% and an expected absolute dividend of no less than HK$ 0.70/share.
- None.
Insights
The strategic announcement by CNOOC Limited outlines significant production targets and capital expenditure plans, which are indicative of the company's aggressive growth trajectory. The projected increase in net production to 700-720 million BOE for 2024, with further increments in 2025 and 2026, suggests a strong focus on scaling operations to meet global energy demands. This is particularly noteworthy given the current geopolitical climate where energy security is a paramount concern for many nations.
Investors and market analysts may view the delineation of capital expenditures, with a dominant 63% dedicated to development, as a strong signal of future revenue streams. However, the efficiency of these investments is critical, especially in a sector with fluctuating oil prices and the ongoing transition to renewable energy sources. The emphasis on technological innovation and the development of green technologies such as CCS/CCUS and offshore wind power generation could mitigate environmental concerns and align with global sustainability trends, potentially enhancing the company's market positioning.
CNOOC Limited's commitment to green development and the industrialization of CCS/CCUS technologies is a forward-thinking approach that aligns with global efforts to reduce carbon emissions. The establishment of an offshore CCUS demonstration center signals the company's proactive stance on environmental responsibility. This could not only improve the company's public image but also potentially provide a hedge against future regulatory risks associated with carbon emissions.
Furthermore, the company's plan to increase green power substitution and exceed 700 million kWh of green electricity consumption in 2024 indicates a strategic pivot towards sustainable energy practices. This shift is likely to resonate with environmentally conscious investors and could provide long-term benefits as the global economy transitions to greener energy sources.
The financial implications of CNOOC Limited's dividend policy, with a minimum annual payout ratio of 40% and a commitment to an absolute dividend of no less than HK$ 0.70/share, are noteworthy for shareholders. This policy could be perceived as a strong indicator of the company's confidence in its financial stability and future profitability. It is also a sign of shareholder-friendly governance, which might attract income-focused investors.
However, the sustainability of such a dividend policy should be evaluated in the context of the company's capital expenditure and the inherent volatility of the energy sector. While the dividend policy is attractive, it is essential to consider the balance between rewarding shareholders and retaining enough capital to fund the ambitious growth and development plans outlined in the strategy.
- Continue to increase reserves and production, significantly gear up annual production targets
- Focus on investment efficiency, and maintain a reasonable capex structure
- Steadily promote the integrated development of new energy and oil and gas business
As global oil and gas demands steadily grow, the Company continues to increase reserves and production, and maintains strong growth of production volume. In 2024, net production target is 700 million to 720 million barrels of oil equivalent (BOE), of which, production from
The Company's production growth is attributable to strong pipeline of new projects and sufficient capital investment. We focus on the efficiency of investment and make prudent plans on capital expenditure to ensure the sustainable development of our oil and gas business. The Company's total capital expenditure for 2024 is budgeted at
The Company strives to search for large and medium-sized oil and gas fields, and continues to strengthen the resource base for increasing reserves and production. In 2024, the exploration workload will remain at a high level. The Company will increase its efforts in natural gas exploration, and push forward the construction of three trillion-cubic-meters-level gas regions, in the South China Sea, the Bohai Sea and onshore
In 2024, multiple high-quality projects will be brought on stream. Major projects in
The Company continues to lever technological innovation to sustain reserves and production growth, and to empower the Company's high-quality development. Key technologies for deepwater exploration, and for sustaining and increasing volume from producing oilfields have been continuously improved. Besides, the Company continues to build intelligent oil and gas fields, establish technology system, refine digital scenarios, accelerate the construction of unmanned and semi-unmanned offshore platforms, and speed up the installation of typhoon mode.
The Company pursues green development, and explores the industrialization of CCS/CCUS technologies. Comprehensive assessment of storage potential offshore
The Company always attaches importance to rewarding shareholders and actively shares the benefits of development. Subject to the approval by the general meeting of shareholders on the proposed dividends for each year, from 2022 to 2024, the annual payout ratio will be no less than
Mr. Zhou Xinhuai, CEO and President of the Company, said, "In the coming year, CNOOC Limited will aim high while keeping its feet on the ground. We will implement the three key programs of increasing reserves and production, technological innovation and green development, and press ahead with the initiative of quality and efficiency enhancement, so as to lay a solid foundation for development, and improve the capability of value creation."
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Notes to Editors:
More information about the Company is available at http://www.cnoocltd.com.
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This press release includes forward looking information, including statements regarding the likely future developments in the business of the Company and its subsidiaries, such as expected future events, business prospects or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company as of this date in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company currently believes are appropriate under the circumstances. However, whether actual results and developments will meet the current expectations and predictions of the Company is uncertain. Actual results, performance and financial condition may differ materially from the Company's expectations, including but not limited to those associated with macro-political and economic factors, fluctuations in crude oil and natural gas prices, the highly competitive nature of the oil and natural gas industry, climate change and environment policies, the Company's price forecast, mergers, acquisitions and divestments activities, HSSE and insurance policies and changes in anti-corruption, anti-fraud, anti-money laundering and corporate governance laws.
Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realised or, even if substantially realised, that they will have the expected effect on the Company, its business or operations.
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For further enquiries, please contact:
Ms. Cui Liu
Media & Public Relations
CNOOC Limited
Tel: +86-10-8452-6641
Fax: +86-10-8452-1441
E-mail: mr@cnooc.com.cn
Mr. Bunny Lee
Porda Havas International Finance Communications Group
Tel: +852 3150 6707
Fax: +852 3150 6728
E-mail: cnooc.hk@pordahavas.com
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SOURCE CNOOC Limited
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