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CNOOC Offers Business Strategy & Development Plan for 2017

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Chinese offshore giant CNOOC Ltd. (CEO - Free Report) recently released its business strategy and development plan for 2017.

For this year, the company targets net production in the range of 450 million to 460 million barrels of oil equivalent (BOE). Of the total production, about 64% will be produced in China and 36% overseas. Estimated net production for 2018 and 2019 are 455–465 million BOE and 460–470 million BOE, respectively. In 2016, the net production was expected to be about 476 million BOE.

In 2017, five new projects are likely to be brought online, of which the Penglai 19-9 oilfield comprehensive adjustment project and the Enping 23-1 oilfields in China have begun production. The other three projects – phase two of the Weizhou 12-2 oilfield project in China, the BD gas field in Indonesia and the Hangingstone project in Canada – will begin production as scheduled. Currently, about 20 projects are under construction.

In 2017, the company proposes to drill 126 exploration wells and procure 3-Dimensional (3D) seismic data for about 13 thousand square kilometers.

The company estimates total capital expenditures for 2017 in the range of RMB60.0–RMB70.0 billion. Of this, capital expenditures for exploration, development and production will account for about 18%, 66% and 15%, respectively. The company will maintain prudent fiscal management and boost capital efficiency to expedite development.

Shares of the company appreciated 45.9% in the last one year, while the Zacks categorized Oil & Gas-Emerging Markets Integrated industry gained 113.6% in the same time span. The company’s projection for 2017 is expected to drive the stock higher.



CNOOC currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Braskem S.A. (BAK - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Noble Midstream Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Braskem posted a positive earnings surprise of 107.79% in the last reported quarter.

Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It had an average earnings surprise of 40.55% in the four trailing quarters.

Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.

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