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Cnooc estimates oil output growth below target for third year

  • China's Cnooc (CEO -6%) is sharply lower after saying yesterday it is aiming for a production increase this year of as much as 4.3%, excluding contributions from its Nexen acquisition, well below its 6%-10% annual growth target for 2011-15 for a third straight year.
  • Barclays, for one, had been looking for a 6% increase from Cnooc, which has been struggling to boost its output over the past few years as domestic fields age.
  • Projects slated for development in 2014 include the Golden Eagle project in the North Sea and six in China; with these projects underway, some analysts say Cnooc could hit the 6% annual growth rate at the lower end of its target range, but 10% will be much harder.
  • Credit Suisse, Nomura and Bernstein all downgraded shares this morning.
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