Australia markets open in 8 hours 26 minutes
  • ALL ORDS

    6,888.20
    +32.70 (+0.48%)
     
  • AUD/USD

    0.7341
    -0.0018 (-0.25%)
     
  • ASX 200

    6,683.30
    +39.20 (+0.59%)
     
  • OIL

    45.56
    +0.65 (+1.45%)
     
  • GOLD

    1,809.90
    +5.30 (+0.29%)
     
  • BTC-AUD

    26,095.83
    -58.41 (-0.22%)
     
  • CMC Crypto 200

    379.50
    +8.98 (+2.42%)
     
✉️ SIGN UP NOW:

Make 2021 your best financial year yet!

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

Zacks Equity Research

CNOOC Limited 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

CNOOC Limited Price
CNOOC Limited Price

CNOOC Limited price | CNOOC Limited Quote

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 SNP and PetroChina 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 Midstream Partners 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>>


 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
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
 
To read this article on Zacks.com click here.
 
Zacks Investment Research