...March 26, 2020 HONG KONG (S&P Global Ratings) March 26, 2020--S&P Global Ratings said today that CNOOC Ltd.'s plan to significantly cut its capital expenditure (capex) and production in 2020 shows management's willingness to adjust to the oil price slide. This is consistent with our view that the issuer will be flexible in its budgeting in response to crude prices. Over the longer term, we expect CNOOC Ltd. will comply with central government policy that national oil companies continuously increase spending to enhance the nation's energy security. Though the company's 2020 production could come below our forecast of 510 million barrels of oil equivalent (boe), its capex may fall below our current assumption for a 10% cut to the original target. Management did not give specific figures at yesterday's results briefing as the plan was pending board approval. Their original 2020 target of 525 million boe of oil and gas production, involving Chinese renminbi (RMB) 85 billion-RMB95 billion in...
