BAKU, Azerbaijan, April 18. China's oil output growth is expected to stand at 66,000 b/d year-on-year in 2023, Trend reports via monthly oil outlook from OPEC.
"China's liquids production rose month-on-month in February by 39,000 b/d to average 4.6 mb/d, which is a jump of 158,000 b/d year-on-year, according to official data. Crude oil output in February averaged 4.2 mb/d, up by 40,000 b/d compared with the previous month but higher year-on-year by 156,000 b/d. NGLs and condensate production was largely stable m-o-m, averaging 48,000 b/d," the report said.
According to OPEC, for 2022, China's liquids output growth is estimated at 156,000 b/d to an average of 4.5 mb/d. At the same time, this forecast remained unchanged from the previous outlook, and also is an increase of 3.6 percent year-on-year.
Thus, the country's output in 2023 is forecast at 4.5 m/d, which is 37,000 b/d higher, compared to the last month’s assessment. This revision is due to higher-than-expected production in the first quarter of 2023.
"Natural decline rates are expected to be offset by additional growth through more infill wells and enhanced oil recovery (EOR) projects amid efforts by state-owned oil companies to safeguard its energy supply," the report said.
As OPEC pointed out, new offshore discoveries, development of remote coastal basins and increased investment in prospective mining projects are expected to offset the decline in production from mature deposits
"China National Offshore Oil Corporation (CNOOC) exceeded its planned capex last year by spending 102.5 billion yuan, higher than its initial allocated budget. CNOOC officials noted that the company plans to spend up to 110 billion yuan in 2023, with more than three-quarters of its budget dedicated to domestic upstream developments. In addition, PetroChina overspent its 2022 budget by a hefty 32 billion yuan for a total 274 billion yuan, with all the extra funds allocated to its upstream segment. However, PetroChina has indicated plans to cut its 2023 spending to 243.5 billion yuan to align it with its initial 2022 budget," the report added.