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CNOOC Limited (ticker: CEO) plans to target 470-480 MMBOE for its net production goal in 2018. The geographic production areas are split between China (64%) and overseas (36%). The company’s net production for 2017 stood at approximately 469 MMBOE. As for 2019 and 2020, projected numbers are 485 MMBOE and 500 MMBOE, respectively.

CNOOC 2018: 470 MMBOE Target, $11 Billion CapEx

CNOOC Dongfang 13-2 Gas Fields, Feb. 2018

A stampede of projects

CNOOC has scheduled five new projects to come on-stream in 2018. The Stampede oil field is in the United States, whereas the rest are in China. The Weizhou 6-13 and the Penglai 19-3 1/3/8/9 are both oil fields, whereas the Dongfang 13-2 and the Wenchang 9-2/9-3/10-3 are both gas fields.

CNOOC 2018: 470 MMBOE Target, $11 Billion CapEx

CNOOC Stampede Oil Field, Feb. 2018

The Stampede oil field began production on February 6, 2018. The Stampede field is located in the Gulf of Mexico, approximately 185 kilometers (115 miles) south of Fourchon, Louisiana. It is positioned in approximately 1,066 meters (3,500 feet) of water, with a reservoir depth of 9,100 meters (30,000 feet).

The facility has a gross topside processing capacity of approximately 80,000 BOPD, 40 MMcf of natural gas per day and 100,000 barrels of water injection capacity per day.

Under the current development scope, production facilities will consist of six subsea production wells and four water injection wells tied back to a Tension Leg Platform (TLP). Three production wells are currently completed and production is expected to ramp up through 2018.

Nexen Petroleum Offshore U.S.A. Inc., a wholly owned affiliate of CNOOC Limited, has a 25% working interest in Stampede field. Hess Corporation, Union Oil Company of California, a subsidiary of Chevron Corporation and Statoil Gulf of Mexico LLC, each have a 25% working interest, while Hess is the operator.

Heavy drilling and spending

In 2018, the company plans to drill 132 exploration wells and acquire approximately 19 thousand square kilometers of 3D seismic data. Total capital expenditure for the company in 2018 is budgeted at RMB 70-80 billion (approximately USD 11-12 billion). The capital expenditures for exploration, development and production account for approximately 18%, 65% and 16%, respectively.

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