"Because of the damaged Liuhua field, the production target for this year is not high. But with more projects coming on stream, I can say that our output may reach 190 million barrel oil equivalent for 2008, or even higher for 2009," Yang said.

Five CNOOC projects are scheduled to come on stream in 2007, with 10-plus projects under construction. Its investment budget will hit more than $4 billion this year, while exploration costs will reach $512 million, according to Yang.

Most of the $512 million exploration budget (75 percent) will go to local projects, which can be categorized as mature, rolling and frontier areas.

Major projects either on stream or in progress this year are Penglai 19-3 phase two, Huizhou 25-4, SES gas phase two in Indonesia, Wenchang oilfields and OML130 in Nigeria.

CNOOC's criteria for selecting and evaluating projects at home and abroad are based on three key areas oil and gas reserves, economic returns and risks, Yang said.

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