Cnooc (NYSE:CEO)

GeoProfile
Overview
GeoResearch
Message Board
Alerts Log
GeoWire Log
Third party data
Quote
Level II
Historical Prices
Options
Profile
Financials
Charts
News
Filings
Insiders

Tuesday, April 24, 2012

Comments & Business Outlook

HONG KONG, April 24, 2012 /PRNewswire-Asia/ -- CNOOC Limited (the "Company", NYSE: CEO, SEHK: 00883) is pleased to announce its results for the first quarter of 2012.

In this quarter, the Company achieved a total net production of 79.8 million barrels of oil equivalent (BOE), representing 6.3% decrease year over year (YoY) mainly due to the suspension of production of Penglai 19-3 oilfield at Bohai which is operated under a production sharing contract.

For the first quarter of 2012, the Company made five new discoveries and drilled five successful appraisal wells in offshore China, among which Kenli 2-1 at Bohai was a mid to large sized new oil discovery and large discovery of Penglai 9-1 was successfully appraised. In addition, Dongfang 13-2 discovery was made in high-temperature and high-pressure natural gas reservoir in Yinggehai. During the period, the Company's major projects were in progress as planned. In the aspect of overseas development, the Company completed the acquisition of one-third interests in each of Exploration Areas 1, 2 and 3A in Uganda from Tullow Oil plc.

In this quarter, the unaudited oil and gas sales revenue of the Company reached approximately RMB48.84 billion, representing 3.7% increase YoY. During the period, the Company's average realized oil price increased 19.4% YoY to US$120.79 per barrel while the average realized gas price increased 19.8% YoY to US$5.88 per thousand cubic feet.

Within the period, as the Company enhanced exploration and development activities, its capital expenditure increased 58.2% YoY to about RMB9.64 billion.

Mr. Li Fanrong, Chief Executive Officer of the Company commented, "In the first quarter, the Company had made significant progress in exploration area, particularly by obtaining a mid to large sized new oil discovery and successful appraisal of a large oilfield in Bohai. I believe these achievements will strongly support our production growth target of 6-10% CAGR from 2011 to 2015."

Permalink

Post a comment

Tuesday, February 21, 2012

Acquisition Activity

HONG KONG, Feb. 21, 2012 /PRNewswire-Asia/ -- CNOOC Limited (the "Company", NYSE:CEO; SEHK:0883) announced the closing of the Sale and Purchase Agreements ("SPAs") between the Company and Tullow Oil plc ("Tullow"). According to the SPAs, the Company purchased one third interest from Tullow in Exploration Areas ("EA") 1, 2 and 3A in Uganda. The total consideration of the transaction was approximately US$1.467 billion in cash.

After the transaction, the Company will operate the new Kanywataba license in the former EA 3A, and the Kingfisher production license which was converted due to the discovery in the former EA 3A. Tullow and TOTAL S.A. will operate EA 2 and EA 1 respectively.

Mr. Li Fanrong, Chief Executive Officer of the Company commented, "We are delighted to see the completion of this important transaction which will not only add value to our shareholders but also bring social welfare to the people of Uganda. CNOOC Limited will work closely with our project partners and the Government of Uganda to expedite the development program."

Permalink

Post a comment

Wednesday, January 18, 2012

Comments & Business Outlook

HONG KONG, Jan. 18, 2012 /PRNewswire-Asia/ -- CNOOC Limited (the "Company", NYSE: CEO, SEHK: 0883) today announces a summary of the Company's business strategy and development plan for the year 2012.

The total targeted net production of the Company in 2012 is 330 to 340 million barrels of oil equivalent (BOE). The Company's net production for 2011 is estimated to be 331 to 332 million BOE.

During the year, four new projects in offshore China are expected to come on stream, among which the incremental peak production of Panyu 4-2/5-1 adjustment project is expected to reach around 57 thousand barrels per day in 2014, demonstrating the huge potential of the Company's producing fields. More adjustment projects are expected to come on stream in offshore China in the next few years and become an important driver to the Company's future production growth. In overseas, Long Lake oil sands project in Canada and Missan oilfield in Iraq are expected to make production contribution. Currently, there are 16 projects under construction, laying a solid foundation for the Company's mid to long term development.

In the aspect of exploration, the Company will enhance its independent deepwater exploration, while expanding exploration in new areas and frontiers. An aggregate of 114 exploration wells including 3 independent deepwater wells in South China Sea are expected to be drilled and 18,300 kilometers 2-Dimensional (2D) seismic data and 19,200 square kilometers 3-Dimensional (3D) seismic data to be acquired. The Company's reserve replacement ratio (RRR) is targeted to exceed 100% in 2012.

In 2012, in order to support a sustainable growth as well as to accelerate the exploration and development of deepwater and unconventional energy, the Company's total capital expenditure is expected to reach US$9.3-11.0 billion, among which the capital expenditures for exploration, development and production account for around 17%, 68% and 14% respectively.

"In the coming year, the Company will strive to ensure that the capital expenditure plan is effectively implemented in order to support the Company's future production and reserve growth. Meanwhile, the Company will continue to maintain its relative cost advantage under the rising industry cost environment," Mr. Zhong Hua, CFO of the Company commented.

Mr. Li Fanrong, CEO of the Company said, "In 2011, despite of facing a number of challenges, the Company has eventually completed its annual production target. It does not come easy. In the future, the Company will still be targeting to achieve 6-10% CAGR on production growth from 2011 to 2015 by means of regional development and comprehensive adjustments in producing oilfields in offshore China as well as pushing for deepwater exploration and development. All these will lay a solid foundation for the Company's mid to long term development strategy and create more value for the shareholders."

Permalink

Post a comment

Tuesday, January 10, 2012

Legal Insights

HONG KONG, Jan. 10, 2012 /PRNewswire-Asia/ -- CNOOC Limited (the "Company", NYSE: CEO, SEHK:0883) said today that its parent company, China National Offshore Oil Corporation ("CNOOC"), received a Notice Calling for Responses from Tianjin Maritime Court of the People's Republic of China on Jan. 10, 2012. Twenty-nine marine product culturists from Laoting County, Tangshan City, Hebei Province have initiated legal proceedings against Conoco Phillips China Inc. and CNOOC, and believed that their cultivation losses were caused by the Penglai 19-3 oil spill incident. The claims include compensation for cultivation losses of RMB234.5746 million, valuation fees of RMB7.0372 million and the relevant litigation costs.

The Company has consulted its legal advisers in relation to the above matter. If there is any significant development in relation to the above matter, the Company will make disclosure in a timely manner.

Permalink

Post a comment

Tuesday, January 3, 2012

Comments & Business Outlook

HONG KONG, Dec. 31,2011 /PRNewswire-Asia/ -- CNOOC Limited (the "Company" or "CNOOC Ltd."; NYSE "CEO", SEHK "883") is pleased to announce today that Lufeng (LF) 13-2 adjustment project has come on stream successfully.

The project is located in Pearl River Mouth basin, with average water depth of approximately 132 meters. The development and production operations of the project mainly rely on the original LF 13-2 Well Head Platform and LF 13-1 platform. With 3 wells online currently, and another 5 wells to be brought on stream, this project is expected to hit its peak production of around 33 thousand barrels per day in the second half of 2012.

Mr. Chen Bi, the executive vice president of the Company commented: "the successful startup of LF 13-2 adjustment project enables the adjacent fields to share the production facilities, which will reduce the production cost, and improve the economic return of relevant fields."

LF13-2 adjustment project is an independent oil field of CNOOC Limited, the Company holds 100% of interest of the field and acts as the operator.

Permalink

Post a comment

Monday, November 28, 2011

Comments & Business Outlook

HONG KONG, Nov. 28, 2011 /PRNewswire-Asia/ -- CNOOC Limited (the "Company", NYSE: CEO, SEHK: 0883) announced today that CNOOC Luxembourg S.a r.l, an indirect wholly-owned subsidiary of the Company, has completed its acquisition of OPTI Canada Inc. ("OPTI"). The total value of the consideration is approximately US$2.1 billion. An application to delist the OPTI Shares will be filed by OPTI with the TSX Venture Exchange on the completion date to coincide with the completion of the transaction. Subject to approval by the TSX Venture Exchange, the delisting of the OPTI Shares is anticipated to be effective on December 1, 2011. In addition, OPTI will redeem on December 28, 2011 all of its outstanding First Lien Notes at a price equal to 102% of the principal amount of the First Lien Notes plus accrued and unpaid interest to the date of redemption, pursuant to the indentures governing the First Lien Notes. The First Lien Notes consist of US$525 million principal amount of 9% First Lien Notes due 2012 and US$300 million principal amount of 9.75% First Lien Notes due 2013.

Mr. Li Fanrong, newly appointed Chief Executive Officer of the Company commented, "Closing of this acquisition demonstrates that the Company has further stepped into the oil sands business, which has become one of the important assets to the Company's global portfolio. Through partnership with Nexen, the Company expects to fully exploit the growth potential of the Long Lake Project and the three other jointly owned oil sands leases. We believe that the project will contribute to the Company's mid to long term reserve and production growth."

The Company's financial advisors are BMO Capital Markets and CIBC World Markets. The Company's legal advisor is Gowling Lafleur Henderson LLP.

Permalink

Post a comment

Saturday, July 2, 2011

Liquidity Requirements

Our primary source of cash during 2010 was cash flow from operating activities. We believe our future cash flows from operations, borrowing capacity and funds raised from our debt offerings will be sufficient to fund planned capital expenditures and investments, debt maturities and working capital requirements through at least 2011.

Permalink

Post a comment

Wednesday, March 23, 2011

Comments & Business Outlook

Year End Results:

The strong growth of oil and gas production, together with the high realized price, facilitated the Company's oil and gas sales to reach $22.73 billion, an increase of 77.7% yoy. In the meantime, the Company's net profit hit a record high of $8.3 billion, with a remarkable growth of 84.5% yoy.

Mr. Yang Hua, CEO of the Company commented, "In 2010, CNOOC Limited recorded exciting results in production growth, reserve replacement and net profit, demonstrating the Company's outstanding operational and management capabilities. Although in the year, the pressure on cost inflation was still one of the steep challenges faced by the entire industry, we were able to maintain a competitive cost structure among the global peers by implementing stringent cost control measures. "

In 2010, our basic earnings per share (EPS) reached $0.19. The Board of Directors has proposed a year-end dividend of $0.03 per share. Together with an interim dividend of (about) $0.03 per share, the Company will distribute a total dividend of $0.06 per share in the year.

Note: Figures were converted into USD.

Permalink

Post a comment

Thursday, January 27, 2011

Comments & Business Outlook

HONG KONG, Jan. 27, 2011 /PRNewswire-Asia/ -- CNOOC Limited today announced its 2011 business strategy and development plan.

The total net production of the Company in 2011 is targeted at 355-365 million barrels of oil equivalent (BOE) (assuming with WTI at US$82.0/barrel). The Company's net production for 2010 is estimated to be 327-329 million BOE (with WTI at US$79.5/barrel).

During the year, there are four new projects offshore China expected to come on stream, including major projects such as Jinxian1-1 and Jinzhou 25-1. In overseas, Eagle Ford project in the U.S. and Bridas Corporation in Argentina are expected to deliver production. The new oil and gas fields brought on stream in 2010 and 2011, together with new projects in overseas, are expected to facilitate the production growth in 2011. Meanwhile, 15 projects are under construction, driving the mid to long term production growth of the Company.

Permalink

Post a comment