Top Chinese offshore oil and gas producer CNOOC Ltd is aiming for an up to 4.3 percent output increase this year, excluding contributions from acquisition Nexen, well below its average annual growth target for 2011-2015 for a third year.
CNOOC has vowed it will still meet the annual growth target of 6-10 percent for the five years through 2015, increasing its capital spending budget by as much as a third from last year to almost $20 billion and aiming to get 20 projects into construction this year while launching up to 10 more.
The 2014 growth rate target missed the expectations of some research houses, including Barclays, which had been looking for a 6 percent increase for this year. CNOOC, once an investor darling for its high-growth profile, has been struggling to boost its output over the past few years as domestic fields age.Meanwhile, Chinese demand for oil has decreased, according to Reuters via Rigzone:
China's oil consumption in 2013 posted the slowest rise in more than two decades, data showed on Monday, as softer economic growth sliced into demand for transportation and industrial fuels such as diesel.
While a slowdown in oil consumption by the world's second-largest user was expected, the sluggish rise could pressure global oil prices at a time OPEC member Iran's nuclear deal with world powers is raising the possibility of the Middle Eastern nation being allowed to pump and export more oil.
China's energy appetite has driven global oil demand growth for the past decade as usage slows in industrialized nations. Its slowing demand last year capped prices that would have otherwise soared on the plunge in exports from Iran, prolonged outages in Libya and disruptions in Sudan.
China's implied oil demand rose 1.6 percent in 2013, or 150,000 barrels per day (bpd) on the year, according to Reuters calculations based on preliminary government data. Reuters started calculating implied oil demand from 2005.
But data from the International Energy Agency (IEA) indicates that apparent oil demand has not grown as slowly since at least 1992, although its calculation methods may differ.