Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

What Does CNOOC's 2020 Capex & Production Guidance Tell Us?

Published 01/13/2020, 09:51 PM
Updated 07/09/2023, 06:31 AM

CNOOC Limited (NYSE:CEO) provided capital expenditure and operational plans for 2020.

For the current year, the company projects net production in the range of 520-530 million barrels of oil equivalent (BOE), indicating growth from 2019’s estimated output of 503 million BOE.

CNOOC had earlier envisioned its 2019 output in the range of 480-490 million BOE. Of this year’s total production, about 64% will be drawn from China and 36% overseas. Estimated net production for 2021 and 2022 stands at 555 million BOE and 590 million BOE, respectively.

In 2020, 10 new projects are likely to be commissioned, of which the Liza oil field phase 1 in Guyana initiated production ahead of time. The other nine projects, namely Penglai 19-3 oil field block 4 adjustment/Penglai19-9 oil field phase II, Qinhuangdao 33-1 South oil field phase I, Bozhong 19-6 gas field pilot area development project, Luda 16-3/21-2 joint development project, Nanbao 35-2 oil filed S1 area, Jinzhou 25-1 oil field 6/11 area, Liuhua 29-1 gas field development project and Liuhua 16-2 oil field/20-2 oil field joint development project in offshore China plus Buzzard oil field phase II in the UK will begin production on schedule.

CNOOC Limited Price

In the ongoing year, the company proposes to drill 227 exploration wells and procure 3D seismic data for about 27 thousand square kilometers.

Notably, this one of China’s big three oil giants {the other two being Sinopec (NYSE:SNP) and PetroChina (NYSE:PTR) } projects total capital expenditures for 2020 in the range of RMB 85-RMB 95 billion. Of this, around 20%, 58% and 20% will be allocated to exploration, development and production, respectively. The capex budget hits an all-time high since 2014 and implies improvement from the projected capital budget of RMB 70-RMB 80 billion for 2019.

CNOOC, which is engaged in exploration, development and production of crude oil and natural gas offshore China, plans to focus more on cleaner fuels like natural gas and renewables with more emphasis on offshore wind power this year.

Further, the company intends to expand its oil and gas reserves as well as production, stress on development via innovative technologies and management upliftment plus ensure attractive shareholder returns.

Zacks Rank & Stock to Consider

CNOOC currently carries a Zacks Rank #3 (Hold). A better-ranked player in the energy space is BP (LON:BP) Midstream Partners (NYSE:BPMP) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>




China Petroleum & Chemical Corporation (SNP): Free Stock Analysis Report

CNOOC Limited (CEO): Free Stock Analysis Report

PetroChina Company Limited (PTR): Free Stock Analysis Report

BP Midstream Partners LP (BPMP): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.