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CNOOC's Weizhou 6-9/6-10 Adjustment Project Comes Online

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Chinese offshore giant, China National Offshore Oil Corp. or CNOOC Ltd. (CEO - Free Report) recently commissioned the Weizhou 6-9/6-10 comprehensive adjustment project.

Weizhou 6-9/6-10, which lies in an average water depth of about 35 meters, is an independent oilfield located in Beibu Gulf in the South China Sea. CNOOC holds 100% interest and acts as the operator of the oilfield. The aforesaid adjustment project has constructed one wellhead platform and will also completely utilize the existing facilities of the oilfield.

Currently, there is one producing well that yields about 850 barrels of crude oil per day. The adjustment project is anticipated to touch its ODP designed maximum production capacity of about 3,800 barrels of crude oil per day in 2018.
 

CNOOC is one of the three leading oil companies in China and one of 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.

CNOOC's premium asset portfolio, excellent execution strategy, unique position as a pure oil player and potential transactions in the merger and acquisition space are noteworthy.

CNOOC’s growth will be augmented by significant capital injection for upstream activities over the next five years. The company believes that it will be able to maintain a 6–10% compound annual production growth rate over the next five years on the back of various organic and inorganic measures. In addition, the firm intends to invest RMB60 billion in 2016 to achieve its targeted growth rate.

CNOOC currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Matador Resources Company (MTDR - Free Report) , NGL Energy Partners LP (NGL - Free Report) and Enviva Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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