China’s CNOOC said Tuesday it plans to increase net production by up to 15 percent this year as it slashes capital expenditure by 26 to 35 percent.

The state owned company will raise production to between 475 to 495 million barrels of oil equivalent in 2015, up 10 to 15 percent from 432 million boe produced in 2014.

The company expects to meet its 2015 production target with supplies from its Chinese and oversea fields with about 67 percent of production coming from China, Rigzone said.

CNOOC has seven new projects slated to come online in China this year.

The company also set its 2016 net production target at 509 million boe and placed its 2017 target at 513 million boe.

CNOOC is also planning to drill about 162 exploration wells in 2015 as well as completing an extensive seismic data gathering program.

Low oil prices have prompted CNOOC to cut its 2015 capital expenditure budget to between $11.2 billion to 12.8 billion, down 26 to 35 percent drop over the company’s estimated realized capital expenditure for 2014.


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