BAKU, Azerbaijan, May 12. China's oil production in 2023 is forecast to grow by about 73,000 b/d year-on-year to an average of 4.6 m/d, Trend reports via monthly oil outlook from OPEC.
The forecast has been kept roughly unchanged from last month’s outlook.
"China's liquids production rose month-on-month in March by 53,000 b/d to average 4.6 mb/d, which is a jump of 79,000 b/d year-on-year, according to official data. Crude oil output in March averaged 4.2 mb/d, up by 53,000 b/d compared with the previous month, but higher year-on-year by 76,000 b/d. NGLs and condensate production was largely stable m-o-m, averaging 48,000 b/d," the report noted.
In 2023, as OPEC expects, 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 their energy supply.
"New offshore discoveries, the development of remote onshore basins and more investment in advanced EOR projects are expected to offset the declining output of mature fields. Upstream investment is expected to remain structurally elevated, considering initial 2023 capex announcements by Chinese major oil and gas companies. With a better domestic outlook, the China National Offshore Oil Corporation (CNOOC) has signaled it will scale back investments overseas and forecasts the share of production outside China to fall. Accordingly, nine new projects are planned for commissioning by CNOOC in 2023," the report added.