UPDATE 2-CNOOC sees anaemic output rise in 2013, driving need for M&A

Wed Jan 30, 2013 6:36am EST
 
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* CNOOC 2013 output target below avg annual growth forecast for 2011-2015

* 2013 output forecast based on WTI assumption of $90/bbl

* 2013 capex to jump 31-52 pct yr/yr

* CNOOC struggling to stem output declines at ageing fields -analysts

By Charlie Zhu

HONG KONG, Jan 30 (Reuters) - Top Chinese offshore oil and gas producer CNOOC Ltd said it plans to boost spending to produce up to 2 percent more of the fuels in 2013, below a five-year average growth target, highlighting the need for the state giant to make acquisitions.

The company -- which is acquiring Canadian energy firm Nexen Inc for $15.1 billion in China's largest ever overseas takeover -- has forecast 6 percent to 10 percent compound annual output growth in 2011-2015, partly by focusing on unconventional resources, like oil sands and shale gas.

The low 2013 production growth target showed the company is struggling to prevent output declines at its existing fields -- many of which are ageing, analysts say.

"Clearly the underlying declines of the existing aging fields are so severe that they completely offset the contributions from the smaller new fields," said Gordon Kwan, Head of Energy Research at Mirae Asset Securities.   Continued...