Chinese offshore giant -
) has signed a production sharing contract (PSC) with PetroBroad
Copower Limited for Block 28/03 in Pearl River Mouth Basin in
South China Sea. Located in the eastern Pearl River Mouth Basin
the block covers a total area of 68 square kilometers with water
depth of 95 meters.
Through the contract, CNOOC has prudently passed on the cost and
responsibility to conduct 3D seismic data surveys and drill
exploration wells in the block to PetroBroad Copower. However,
CNOOC has retained the right to participate in up to 51% of
working interest in any subsequent commercial discovery in the
We remain optimistic on CNOOC as its performance reflects its
premium assets portfolio, excellent execution strategy, unique
position as a pure oil play and potential transactions in the
merger and acquisition space.
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 a
64.41% stake in the company by virtue of its ownership of CNOOC
(China National Offshore Oil Corporation).
CNOOC carries a Zacks Rank #4 (Sell). However, there are other
Zacks Ranked #1 (Strong Buy) stocks -
PetroQuest Energy Inc.
Eagle Rock Energy Partners, L.P.
Newpark Resources Inc.
) - that are expected to perform impressively over the short
CNOOC LTD ADR (CEO): Free Stock Analysis
EAGLE ROCK EGY (EROC): Free Stock Analysis
NEWPARK RESOUR (NR): Free Stock Analysis
PETROQUEST ENGY (PQ): Free Stock Analysis
To read this article on Zacks.com click here.