CNOOC Brings Bohai Sea Oilfield Online - Analyst Blog

Chinese oil giant, CNOOC Limited CEO has brought its Kenli 3-2 oilfield online.

Located in the southern Bohai Sea, the Kenli 3-2 oilfields, includes Kenli 3-2, Bozhong 34-6/7 and the southern part of Bozhong 29-4 and Bozhong 35-2 oilfields. The Kenli 3-2 oilfield lies in a water depth of about 20 meters. The major production facilities comprise 7 offshore platforms and 1 onshore oil processing terminal. The oilfields are estimated to have peak production of about 35,000 barrels per day.

CNOOC has 100% interest in the oilfields.

CNOOC is one of the three major oil companies in China and a leading independent oil and gas exploration and production company in the world. It is a dominant producer of offshore crude oil and natural gas in China that engages in the exploration, development, production and sale of crude oil, natural gas, and other petroleum products. CNOOC is the only company permitted to conduct exploration and production activities with international oil and gas companies off the shores of China.

CNOOC's performance, which reflects its premium assets portfolio, excellent execution strategy, unique position as a pure oil player and potential transactions in the merger and acquisition space is encouraging.

The latest production sharing agreement, which gives CNOOC access to start drilling in the offshore Brazil-based Libra deepwater field, is one of the major oilfields in the world. The minimum work plan of the project is expected to be completed by the end of 2017.

The field is estimated to hold recoverable resources of about 8 to 12 billion barrels of oil. Moreover, the field might produce roughly 1.4 million barrels of oil per day during peak production, subject to some appraisal work. This is likely to prove beneficial for the company's shareholders as it will optimize value from the project.

CNOOC carries a Zacks Rank #3 (Hold). However, some better-ranked stocks in the same sector include Encana Corp. ECA, Pembina Pipeline Corp. PBA and Matrix Service Co. MTRX, all of which have a Zacks Rank #1 (Strong Buy).

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