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Chinese onshore giant CNOOC Ltd. (CEO - Free Report) saw fluctuating investor reaction to its latest announcement relating to the start-up of its Qikou 18-1 oilfield adjustment project, off eastern China. While the stock price moved up 1.75% to touch $186.39 on the day of the announcement, it surprised with a 1.65% drop in the next trading session on Thursday, to close at $183.3 per share.

Located in the western part of hydrocarbon-rich Bohai Bay, the shallow-water Qikou 18-1 oilfield, lies in average water depth of 10 meters. The oilfield is adding two production platforms and a plug-in processing facility to utilize the existing producing facilities.

Per the Beijing-headquartered state player, the expansion is expected to reach peak production in 2014. However, the targeted output has not been disclosed.

The development of this field will be more effective as this project is brought online. The commencement of the project will further facilitate in boosting production as well as the overall processing capability of the field. CNOOC, the operator, holds 100% interest in the independent oilfield Qikou 18-1.

CNOOC is one of the three leading oil companies in China and one of 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, and 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.

CNOOC carries a Zacks Rank #2 (Buy). Some other stocks worth considering in the oil and gas sector include Harvest Natural Resources Inc. , Abraxas Petroleum Corp. (AXAS - Free Report) and Tesco Corp. (TESO - Free Report) . All these stocks hold a Zacks Rank #1 (Strong Buy).

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