China Faces Oil Production Shortfall Next Year

CNOOC Cuts Output Target on Delay in Developing Biggest Field

Feb. 2 (Bloomberg) — CNOOC Ltd., China’s largest offshore oil producer, cut its forecast of growth in production from 2006 to 2010 because of delays in developing what is expected to be the largest field off the country’s coast.

Output may increase by between 7 percent and 11 percent a year during the period, down from an earlier range of between 8 percent and 12 percent, Chairman Fu Chengyu said in Hong Kong today. A project off northeastern China, estimated to contain higher reserves than any of CNOOC’s other fields, won’t reach full capacity until 2012, two years later than expected, he said.

Bloomberg