CNOOC Limited (CEO - Free Report) recently announced that the Nanbao 35-2 oilfield S1 has started production in offshore China. The oilfield is located in the central Bohai Bay region.
The company is expected to use the existing facilities of the Nanbao 35-2 oilfield at the site. It has plans to develop three wells at the site, wherein water depth is 17 meters. Moreover, the development will include one unmanned wellhead platform. The China-based state-owned offshore oil and gas company expects the project to reach peak output capacity of 1,800 barrels of oil per day in the next year. The Nanbao 35-2 oilfield S1 area is fully owned by CNOOC.
The company was expected to start up eight offshore China projects this year, among which six were supposed to be located in the Bohai region and two in the Eastern South China Sea. Including the Nanbao 35-2 oilfield S1, CNOOC has commenced production in four Bohai projects. It has reportedly started production drilling in the Bozhong 19-6 gas discovery in Bohai bay. Onshore construction is being carried out in another project, Jinzhou 25-1 oil field 6/11 area in the Bohai region. It is likely to witness peak production capacity of 16,500 barrels of oil equivalent per day (Boe/d).
The Eastern South China Sea projects are under commissioning status. Markedly, the company’s Buzzard oil field Phase II project located in the United Kingdom has been postponed to next year. It will likely have peak production capacity of 37,000 Boe/d. CNOOC has a 43.21% stake in the project.
In first-half 2020, the company’s production in China was recorded at 173.9 million Boe. During this period, its overseas production was 257.9 million Boe. Notably, the coronavirus pandemic had a significant impact on the company’s profits in first-half 2020. Net profit for the first six months of 2020 was recorded at RMB 10,383 million, down 65.7% from the comparable period in 2019. To navigate through the ongoing market uncertainty, it lowered its capital budget and production guidance for this year during April-end.
The stock has gained 15.2% in the past six months.
Zacks Rank and Other Stocks to Consider
Currently, the stock carries a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy space include Royal Dutch Shell plc (RDS.A - Free Report) , Equinor ASA (EQNR - Free Report) and EOG Resources, Inc. (EOG - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shell’s bottom line for 2021 is expected to jump 112.5% year over year.
Equinor’s bottom line for 2021 is expected to skyrocket 121.7% year over year.
EOG Resources’ sales for 2021 are expected to rise 18.8% year over year.
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