CNOOC Sets $12-$14B as '13 Budget - Analyst Blog
04 Février 2013 - 4:20PM
Zacks
China's biggest offshore oil
driller CNOOC Ltd (CEO) has proposed to invest
around $12 billion to $14 billion in 2013 to attain an average
annual output growth of 6% to 10% from 2011 to 2015.
CNOOC’s estimated net production for 2013 is 338–348 million
barrels of oil equivalent (Boe), which is almost flat with the
forecasted 2012 production of 341–343 million Boe.
The company intends to ramp up deepwater exploration during the
year, despite continuous island clashes between China and its
neighboring countries. The Chinese major has allocated 70% of its
spending on development and expects to bring ten new oil and gas
fields online offshore China. Another 19% and 11% of the capital is
assigned for exploration and production respectively.
Of the new projects, the Liwan 3-1 is likely to be the first
large-sized deepwater gas field offshore China. But the
commencement of Suizhong 36-1 phase II adjustment will establish
the huge prospect of CNOOC’s producing fields in this region. The
company is expected to reach its construction peak in 2013, with 24
ongoing projects.
In 2013, the company expects to drill 140 exploration wells and
maintain a reserve replacement ratio of more than 100%. CNOOC will
also purchase 2-Dimensional (2D) and 3-Dimensional (3D) seismic
data, which will boost deepwater exploration activities. Management
expects 2013 to be a year of exploration, development and
construction for future growth.
Recently, CNOOC and energy producer Nexen Inc.
(NXY) jointly agreed to extend the deadline for the closing of the
proposed $15.1 billion deal relating to the acquisition of the
latter, by 30 days. The group took this decision as it awaits
approval from the U.S. government.
CNOOC holds a Zacks Rank #3, which is equivalent to a short-term
Hold rating. However, there are other stocks in the oil and gas
sector like Total SA (TOT) with a Zacks Rank #1
(Strong Buy) and Sunoco Logistics Partners LP
(SXL) with a Zacks Rank #2 (Buy) that are expected to perform
better.
CNOOC LTD ADR (CEO): Free Stock Analysis Report
NEXEN INC (NXY): Free Stock Analysis Report
SUNOCO LOGISTIC (SXL): Free Stock Analysis Report
TOTAL FINA SA (TOT): Free Stock Analysis Report
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