China National Offshore Oil Company (CNOOC), parent company of
China's largest offshore oil producer,
) announced that its Weizhou 6-12 oil field has commenced
production. The oilfiled is located in Beibu Gulf Basin of the
South China Sea.
Situated in an average water depth of about 29.2 meters, the
Weizhou 6-12 oil field has 10 producing wells and is expected to
hit peak production this year itself. The company holds a 51%
interest and acts as the Operator of Weizhou 6-12 oil field. The
partners of this field are privately owned companies Roc Oil
Company Limited, Horizon Oil Limited and Oil Australia Pty
CNOOC is one of largest
independent oil and gas exploration
and production companies of the
world. It is China's dominant producer of offshore
crude oil and natural gas and engages in the exploration,
development, production, and sale of
crude oil, natural gas, and
other petroleum products. CNOOC is also the
only company permitted to conduct exploration and production
activities with international oil and gas companies off the
shores of China.
Going forward, the Chinese company believes that it will be
able to maintain a 6-10% compound annual production growth rate
over the next five years backed by various organic and inorganic
The company's premium assets portfolio, excellent execution
strategy, unique position as a pure oil player and potential
transactions in the merger and acquisition space are its key
In recent times, CNOOC has made significant progress in its
project agenda. The recently commissioned successful oil fields
include the Panyu 4-2/5-1 oilfield adjustment project, the Panyu
4-2/5-1 oilfield project, Weizhou 11-2 and Weizhou 6-9/6-10 − in
two different plays in China. These projects bear evidence to its
constant efforts to upgrade its portfolio and enhance shareholder
CNOOC carries a Zacks Rank #3, which is equivalent to a
short-term Hold rating. However, there are other stocks in the
oil and gas sector -
EPL Oil & Gas, Inc.
Stone Energy Corp.
Quicksilver Resources Inc.
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to
CNOOC LTD ADR (CEO): Free Stock Analysis
EPL OIL&GAS INC (EPL): Free Stock Analysis
QUICKSILVER RES (KWK): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
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