Business News –
By Tsvetana Paraskova – Jun 29, 2020, 10: 30 AM CDT
Upgraded: Jun 29, 2020, 10: 30 AM CDT
A discovery well at the Huizhou 26 -6 discovery in the Pearl River Mouth Basin in the Eastern South China Sea was checked to produce around 2,020 barrels of oil and 15.
CNOOC expects the new oilfield to become the very first mid-to-large sized condensate oil and gas field in the shallow water location of Pearl River Mouth Basin.
CNOOC’s brand-new discovery could be an advantage to China’s ambitions to improve its domestic oil and natural gas production in an effort to lessen its dependence on oil and gas imports. State-controlled CNOOC is among the business that China has charged with changing domestic reserves, even as the oil cost crash has actually forced Chinese state oil majors to cut capital expenditures for this year.
CNOOC, together with PetroChina and China Petroleum & Chemical Corporation (Sinopec), are the nationwide oil companies in Asia that have actually been the worst struck by the oil price collapse, experts state. Nevertheless, China’s NOCs are now prioritizing the boost of domestic oil and gas production and cutting abroad operations.
In the longer term, China’s push for boosting its energy security by increasing domestic production will support greater financial investments from the Chinese oil giants, according to Fitch Rankings..
CNOOC Limited “plays a tactical role in protecting the country’s energy security via its overseas upstream activities, both domestically and overseas,” Fitch said recently, verifying its A score on the company with a “stable” outlook.
CNOOC’s income and EBITDA will be weak this year due to the cost collapse, but they are expected to slowly recover from 2021, in line with Fitch’s oil and gas price deck.
By Tsvetana Paraskova for Oilprice.com
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