Chinese offshore pure play oil and gas exploration and production (E&P) company, CNOOC Limited (CEO) announced that its Wenchang 13-6 oilfield has commenced production.
Located in the western Pearl River Mouth Basin, Wenchang 13-6 oilfield is part of the Wenchang complex. It lies in an average water depth of approximately 120 meters. The Chinese offshore field is being explored by using five producing wells with an output of approximately 1,300 barrels per day. CNOOC is developing the oilfield as a 100% operator. The development of Wenchang 13-6 will consist of one wellhead platform and 12 producing wells.
We remain optimistic on CNOOC as its performance reflects its premium assets portfolio, excellent execution strategy, unique position as a pure oil play and potential transaction in the merger and acquisition space.
CNOOC is one of the three leading oil companies in China and among 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 as well as sale of crude oil, natural gas, and other petroleum products.
The company’s growth will be augmented by significant capital injection for upstream activities in the next five years. Management at CNOOC foresees a sustained 6–10% compound annual production growth rate over the next five years backed by various organic and inorganic initiatives.
CNOOC Ltd. is the only company permitted to conduct exploration and production activities with international oil and gas companies off the shores of China. The Chinese government owns a 64.41% stake in the company by virtue of its ownership of the parent company CNOOC or China National Offshore Oil Corporation.
CNOOC currently carries a Zacks Rank #2 (Buy). Other stocks to consider in the oil and gas sector include Sanchez Energy Corporation (SN), TransAtlantic Petroleum Ltd. (TAT) and Sunoco Logistics Partners L.P (SXL). All these stocks carry a Zacks Rank #1 (Strong Buy).
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