China National Offshore Oil Company (CNOOC), parent company of China’s largest offshore oil producer, CNOOC Ltd. (CEO - Free Report) announced that its Weizhou 6-12 oil field has commenced production. The oilfiled is located in Beibu Gulf Basin of the South China Sea.
Situated in an average water depth of about 29.2 meters, the Weizhou 6-12 oil field has 10 producing wells and is expected to hit peak production this year itself. The company holds a 51% interest and acts as the Operator of Weizhou 6-12 oil field. The partners of this field are privately owned companies Roc Oil Company Limited, Horizon Oil Limited and Oil Australia Pty Ltd.
CNOOC is one of 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 is also the only company permitted to conduct exploration and production activities with international oil and gas companies off the shores of China.
Going forward, the Chinese company believes that it will be able to maintain a 6–10% compound annual production growth rate over the next five years backed by various organic and inorganic activities.
The company’s premium assets portfolio, excellent execution strategy, unique position as a pure oil player and potential transactions in the merger and acquisition space are its key growth drivers.
In recent times, CNOOC has made significant progress in its project agenda. The recently commissioned successful oil fields include the Panyu 4-2/5-1 oilfield adjustment project, the Panyu 4-2/5-1 oilfield project, Weizhou 11-2 and Weizhou 6-9/6-10 − in two different plays in China. These projects bear evidence to its constant efforts to upgrade its portfolio and enhance shareholder value.
CNOOC carries a Zacks Rank #3, which is equivalent to a short-term Hold rating. However, there are other stocks in the oil and gas sector – EPL Oil & Gas, Inc. , Stone Energy Corp. (SGY - Free Report) and Quicksilver Resources Inc. – which hold a Zacks Rank #1 (Strong Buy) and are expected to perform better.