Chinese offshore pure play oil and gas exploration and
production (E&P) company,
) announced that its subsea natural gas pipeline at Zhuhai
Terminal has resumed operations. The pipeline was closed for
repair work after it leaked in Dec 2011.
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The subsea natural gas pipeline of Zhuhai Terminal ruptured due
to external forces and ended up in a leakage. Following rigorous
repairs, CNOOC completed temporary restoration work in mid Jan
2012 and gas supplies at less than half capacity started again.
Currently, the company has resumed normal production and started
providing the natural gas to its customers.
Located in a place that faced rigorous weather conditions, the
leakage point posed several challenges to the regular engineering
resources and operational techniques. The restoration team
attained zero failure rates by using pioneering construction
methods as well as intensifying quality control and brought the
pipeline online once again.
Zhuhai Terminal serves as the gas processing terminal for the
joint development of the natural gas project of both PY30-1 gas
field and HZ oil and gas field. It is situated in the Hengqin
island of Zhuhai city. The average daily yield of the two fields
was around 26,700 barrels of oil equivalent prior to the
incident. This production that was provided to the terminal was
completely closed for a month after the leak.
CNOOC is one of the three leading oil companies in China and
among the 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 as well as sale of crude
oil, natural gas, and other petroleum products. CNOOC Ltd. is the
only company permitted to conduct exploration and production
activities with international oil and gas companies off the
shores of China. The Chinese government owns 64.41% stake in the
company by virtue of its ownership of CNOOC (China National
Offshore Oil Corporation).
CNOOC carries a Zacks Rank #3 (Hold). However, there are other
Zacks Ranked #1 (Strong Buy) stocks -
Hornbech Offshore Services, Inc.
Newpark Resources Inc.
Gulfmark Offshore, Inc.
) - that are expected to perform impressively over the short