CNOOC Ltd. CEO has made a mid-sized discovery in the Eastern South China Sea, which has been named Liuhua 20-2.
Located in the Northern Slope Belt of Baiyun Sag in the Pearl River Mouth Basin of the South China Sea, the Liuhua 20-2 structure lies in an average water depth of about 390 meters.
The discovery well, which was drilled and completed at a depth of approximately 2,970 meters, came across oil-yielding areas with a total thickness of 35.2 meters. According to tests, the well can produce about 8,000 barrels per day of oil and the crude oil density is around 0.75.
The exploration of Liuhua 20-2 has been a successful one and hence, has ascertained the huge potential of Baiyun Sag in the Pearl River Mouth Basin. Moreover, Baiyun Sag is projected to become the new reserves growth area of deepwater exploration of crude oil in South China Sea.
CNOOC is one of the three leading oil companies in China and one of the largest independent oil and gas exploration and production companies in 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.
The company’s oil and gas properties are located in four major production areas in offshore China: Bohai Bay, western South China Sea, eastern South China Sea, and the East China Sea. The company is also one of the largest offshore crude oil producers in Indonesia and has upstream assets in Africa and Australia.
CNOOC currently carries a Zacks Rank #2 (Buy). Better-ranked players from the same space include Transmontaigne Partners L.P. TLP, LRR Energy, L.P. LRE and Pembina Pipeline Corporation PBA. All these stocks sport a Zacks Rank #1 (Strong Buy).
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