CNOOC to mark 20th year with special payout

China National Offshore Oil Corp (0883) plans to pay a 20th anniversary special dividend in addition to the 2021 year-end regular dividend, while an annual dividend in the coming three years is also expected regardless of results.

China's biggest offshore oil and gas driller also pledged boost production as the world's second-largest economy seeks to limit its dependence on pricey energy imports.

CNOOC will boost output by 10 percent to 600 million to 610 million barrels of oil equivalent in 2022, with capital spending at 90 billion yuan (HK$110 billion) to 100 billion yuan, the company revealed yesterday in its annual strategy presentation. Capital expenditure reached about 90 billion yuan in 2021.

Its production plans underscore China'scontinued investment in fossil fuel production even as other oil majors have backed away amid volatile prices and questions about long-term demand.

China is the world's largest energy user and importer of oil, gas and coal. While CNOOC is the smallest of China's Big Three state oil companies it is the first to announce spending plans and usually provides clues to the upstream strategies of PetroChina (0857) and China Petroleum and Chemical Corp (0386) or Sinopec.

CNOOC is also trying to carve out a role in the country's growing clean energy sector, seeking to use its engineering prowess to become a major player in offshore wind power projects.