China National Offshore Oil Corporation, the parent company of
), said that its production at its northern part of Bohai Bay has
been affected by icy weather conditions.
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CNOOC said that extremely harsh weather conditions resulted in
frozen coastal waters and fence in 1,000 ships in ice. North
China is experiencing the coldest winter in 42 years, with
temperatures dropping to minus 7.4 degrees Celsius. China's
meteorological department also warned of continuous severe winter
to prevail in February.
Although CNOOC and China Oilfield Services (COSL) have arranged
13 ice breakers and have installed radar equipment and also
employed people to check the varying conditions in the region,
icy conditions have adversely affected the producing areas of the
Jinzhou 9-3 oilfield and the Jinzhou 20-2 gas field. Presently,
the ice breakers are operating in the Jinzhou 25-1, Jinzhou 25-1
South and Suizhong 36-1 oilfields.
China's northern Bohai Bay is considered the largest offshore oil
and gas production base of the company. CNOOC stated last month
that its oil and gas production in the region exceeded 30 million
cubic meters in 2012.
However, CNOOC also said that it failed to bring new fields
online in Bohai. Penglai 19-3 - the biggest offshore oilfield -
was also shut down following a series of oil spills in 2011.
CNOOC's growth profile should get a boost over the next 3 to 5
years from the resumption of operations in Penglai, development
projects offshore China, international growth from recent
acquisitions, as well as intensive exploration and development
programs with its partners.
CNOOC, which recently inked a deal to purchase Canadian energy
), retains a Zacks #1 Rank that is equivalent to a short-term
Strong Buy rating.