China's biggest offshore oil driller
) has proposed to invest around $12 billion to $14 billion in
2013 to attain an average annual output growth of 6% to 10% from
2011 to 2015.
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CNOOC's estimated net production for 2013 is 338-348 million
barrels of oil equivalent (Boe), which is almost flat with the
forecasted 2012 production of 341-343 million Boe.
The company intends to ramp up deepwater exploration during the
year, despite continuous island clashes between China and its
neighboring countries. The Chinese major has allocated 70% of its
spending on development and expects to bring ten new oil and gas
fields online offshore China. Another 19% and 11% of the capital
is assigned for exploration and production respectively.
Of the new projects, the Liwan 3-1 is likely to be the first
large-sized deepwater gas field offshore China. But the
commencement of Suizhong 36-1 phase II adjustment will establish
the huge prospect of CNOOC's producing fields in this region. The
company is expected to reach its construction peak in 2013, with
24 ongoing projects.
In 2013, the company expects to drill 140 exploration wells and
maintain a reserve replacement ratio of more than 100%. CNOOC
will also purchase 2-Dimensional (2D) and 3-Dimensional (3D)
seismic data, which will boost deepwater exploration activities.
Management expects 2013 to be a year of exploration, development
and construction for future growth.
Recently, CNOOC and energy producer
) jointly agreed to extend the deadline for the closing of the
proposed $15.1 billion deal relating to the acquisition of the
latter, by 30 days. The group took this decision as it awaits
approval from the U.S. government.
CNOOC holds a Zacks Rank #3, which is equivalent to a short-term
Hold rating. However, there are other stocks in the oil and gas
) with a Zacks Rank #1 (Strong Buy) and
Sunoco Logistics Partners LP
) with a Zacks Rank #2 (Buy) that are expected to perform