Cnooc, China's largest offshore oil driller, said it will spend up to $151 billion over the next five years to increase oil output and carryout international expansion plans, which could include additional acquisitions. The bottom end of the company's spending plans through 2015 is expected to be $121 billion.
Cnooc produced more than 50 million tonnes of oil equivalent of oil and gas in offshore China last year, according to China Business News, but aging fields have led to concerns about the company's production targets and forced Cnooc (CEO) to look beyond China's borders for exploration opportunities.
In 2010, Cnooc paid $1.1 billion for a stake in some assets owned by Chesapeake Energy (CHK), the second-largest U.S. natural gas producer. Cnooc, China's third-largest oil producer, also acquired half of Argentina's Bridas and through that partnership was able to purchase BP's (BP) 60% stake in Argentina's Pan American Energy for almost $7.1 billion.
Cnooc targeted pumping 50 million tonnes of oil equivalent from overseas, by 2020, and generating 50 million tonnes of oil equivalent from deepwater sources, Reuters reported.