China’s state-owned offshore oil and gas major CNOOC has announced plans to increase its 2020 capital expenditure (capex) from CNY85 billion to CNY95 billion ($12.34 billion to $13.7 billion).

The announcement comes as part of the company’s business strategy and development plan for the year 2020. It plans to focus on domestic drilling.

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The company is targeting a net production of 520 to 530 million barrels of oil equivalent (Mboe).

Production from China and overseas will account for 64% and 36% of the total production respectively.

CNOOC CFO Xie Weizhi said: “The company will continue to maintain cost competitiveness, maintain prudent investment decision-making, and ensure the effective implementation of the capital expenditure plan to fully promote the company to a new phase of high-quality development.”

In addition, CNOOC expects its net production to be around 555Mboe and 590Mboe for 2021 and 2022 respectively.

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CNOOC’s capex for exploration, development, production and others, together will form over 20%, 58%, 20% and 2% of capital expenditure.

It will also drill 227 exploration wells and acquire 27,000km² of 3D seismic data this year.

CNOOC also expects ten new projects to become operational in 2020. The first phase of Liza oil field in Guyana has already come online, ahead of schedule.

Last year, the company’s capex budget stood between CNY70 billion and CNY80 billion ($10.3 billion and $11.8 billion).

CNOOC president and CEO Xu Keqiang said: “In 2020, the company will steadily increase its oil and gas reserves and production, pursue profitable reserves and production, lay a solid foundation for high-quality development through technology innovations and management enhancement, and create excellent returns for our shareholders.”