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CNOOC Limited (CEO)

- NYSE
  • Fri, Mar. 27, 2:56 PM
    • Cnooc (CEO +4.8%) says it will shelve its shale gas project in Anhui province, in the latest sign that the U.S. shale gas revolution is unlikely to replicate itself in China.
    • CEO Li Fanrong says the company had drilled near Wuhu, in southern Anhui, since late 2011, but decided the block is not suitable for development on a large scale.
    • Cnooc joins PetroChina (NYSE:PTR), which has already sharply cut back on a shale project in Sichuan province it was developing with Royal Dutch Shell.
    • Cnooc tried but failed to interest foreign investors in the Wuhu block, but potential partners have shied away in part because of the dense population in the area; similar concerns held back the PetroChina-Shell project in Sichuan.
    • Earlier: Cnooc surprises with 6.5% profit gain despite oil price plunge
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  • Tue, Feb. 17, 3:31 PM
    • China may merge its state-owned oil companies to create giants that will be more efficient and capable of taking on big overseas rivals, WSJ reports.
    • One plan reportedly would combine the country’s largest oil companies, CNPC (PTR +2%) and Sinopec (SNP +4.2%), while other options include merging Cnooc (CEO +1.8%) with Sinochem.
    • The firms have expanded into each others’ turf over the years, creating overlapping operations that span everything from exploration to refining to running gas pumps.
    • No timetable is set for a decision on whether or when to proceed with the mergers, WSJ says.
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  • Dec. 8, 2014, 2:57 PM
    • China's Cnooc (CEO -2.9%) says its wholly-owned Canadian unit Nexen has started production of heavy crude oil at the Kinosis 1A steam-assisted gravity drainage project in Alberta, part of a larger oil sands project that has been plagued by cost overruns and delays.
    • Output is beginning with a capacity of 20K bbl/day, which will be partially processed at Nexen's nearby Long Lake facility with its own production capacity of 72K bbl/day.
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  • Sep. 2, 2014, 3:57 PM
    • Cnooc's (CEO -2.1%) Nexen subsidiary says production at the North Sea Buzzard oil field may be shut for another week as it works to demobilize a drilling rig during a window of good weather.
    • Industry sources had said earlier the operator of the field was hoping for a possible restart later today.
    • Buzzard is closely watched by oil traders worldwide as it is the biggest contributor to the Forties oil stream, the largest of the four crudes underpinning the price of benchmark Brent crude oil futures.
    • ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DWTI, DNO, SZO, OLO, OLEM
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  • Apr. 25, 2014, 10:14 AM
    • Canadian Oil Sands (COSWF -4.4%) announces an unplanned maintenance-related outage at Syncrude Coker 8-1, prompting it to lower its estimate for 2014 Syncrude production to 95M-105M barrels.
    • National Bank downgrades shares to Underperform from Sector Perform, saying the outage could mean Q2 production will get hit especially hard since the timing could overlap with planned maintenance of another upgrader.
    • Other owners of Syncrude include Imperial Oil (IMO), Suncor (SU), Murphy Oil (MUR), Sinopec (SNP) and Cnooc (CEO).
    | 1 Comment
  • Apr. 23, 2014, 2:54 PM
    • Investors are lining up for Cnooc's (CEO -1.8%) sale of dollar-denominated bonds, placing more than $20B in orders for a deal expected to total ~$4B, WSJ reports.
    • Cnooc reportedly is selling bonds with maturities of three, 10 and 30 years, and seeks to set coupons for these bonds at 1.05, 1.85 and 1.70 percentage points above comparable U.S. Treasurys.
    • Proceeds would be used to help repay loans related to Cnooc's $15B purchase of Canadian oil sands operator Nexen last year.
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  • Jan. 21, 2014, 2:59 PM
    • Cnooc's (CEO -6.2%) loss apparently is Sinopec's (SNP +5.9%) gain, as the two Chinese integrated oil and gas companies move in opposite directions after Cnooc estimated oil production growth below its annual target for the third straight year.
    • J.P. Morgan is surprised Cnooc has guided almost no organic growth in 2014, and thinks the company has set itself up for a difficult 2015, where 14%-18% Y/Y organic production growth would be needed to reach the low end of the 2011-15 6%-10% target; the firm recommends SNP or PetroChina (PTR +0.2%) instead for China oil exposure.
    • SNP's prospects are considered rosier than Cnooc's: Its dividend yield is healthy at 5.21% vs. the 4.67% industry average, and its 9.17 P/E ratio indicates general investor expectations of higher returns in the short and medium term, if not beyond.
    • Also, SNP discloses that Sinopec Group (SHI) increased its shareholding via the acquisition of ~173.25M class A shares on the secondary market as of Jan. 17.
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  • Jan. 21, 2014, 11:24 AM
    • 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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  • Oct. 23, 2013, 3:45 PM
    • Petrobras (PBR -2.9%) has sufficient funds to pay a 6B real ($2.75B) government fee for its share of operations at Brazil's Libra offshore oil field and won't need to request a fuel price increase to meet the obligation, president Maria das Graca Foster says.
    • PBR and a consortium of four other companies - Shell (RDS.A, RDS.B), Total (TOT), CNPC (PTR) and Cnooc (CEO) won the right to explore Libra, estimated to contain 8B-12B boe, but the concession will require payment of a 15B real "signing bonus" before operations begin.
    • PBR's financing capacity has come under scrutiny in recent quarters from analysts after disappointing earnings; it is expected to report Q3 earnings Friday.
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  • Oct. 21, 2013, 2:05 PM
    • Petrobras (PBR +4.9%) teams with Shell (RDS.A, RDS.B), Total (TOT), China National Petroleum (PTR) and Cnooc (CEO) to place the sole and apparently winning bid for Brazil's Libra oil field, as fierce protests outside the auction area appear to have forced the government into giving the business to the local firm.
    • In the only offer made, PBR would own a 40% stake, with Shell having 20%, Total 20% and each of the Chinese companies 10%.
    • The group will work with PBR, which was required to operate the block with at least a 30% stake, to produce from estimated reserves of 8B-12B barrels of recoverable resources.
    | 2 Comments
  • Jun. 5, 2013, 2:28 PM
    Cnooc (CEO -1.6%) is partnering with Iceland's Eykon Energy in an application for a license to explore and produce oil and gas offshore Iceland, which would mark the Chinese company's first foray into offshore Arctic oil drilling as well as the first entry of a major oil company into Iceland's oil sector.
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  • Mar. 25, 2013, 12:59 PM
    Cnooc (CEO +3.2%) shares rise as BAML lifts shares to Buy from Neutral, backing management's positive outlook on volume growth in 2014-15E supported by a solid reserve replacement ratio (excluding Nexen, 188% in 2012 vs. 158% in 2011), and a very strong project pipeline of 30-50 new projects in 2013-15. Jefferies also upgrades Cnooc, to Hold from Underperform.
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  • Mar. 1, 2013, 2:50 PM
    Cnooc (CEO -1.5%) has agreed to cede operating control of Nexen's (NXY) U.S. gulf assets. Drilling leases acquired by the Chinese state-owned oil company as part of its $15B buyout are being altered as a condition of U.S. approval, with the control structure being changed - although CEO still could retain ownership of the economic value of the contracts. U.S. officials had scrutinized the deal because NXY owned more than 200 drilling leases in the Gulf of Mexico, which is a primary source of U.S. oil.
    | 1 Comment
  • Feb. 12, 2013, 9:06 AM
    Nexen (NXY) says the Committee on Foreign Investment in the United States approves its $15.1B takeover by China's Cnooc (CEO), removing the final barrier to China's largest foreign takeover. NXY expects the deal to close the week of Feb. 25. NXY +2% premarket.
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  • Dec. 10, 2012, 9:10 AM
    Premarket gainers: IN +23%. GERN +17%. NXY +15%. CLDX +10%. STSI +7%. AAV +7%.
    Losers: ZGNX -39%. CBMX -18%. DMND -5%.
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  • Dec. 10, 2012, 8:52 AM
    Cnooc (CEO) still needs approvals from the U.S. and U.K. governments to complete its takeover of Nexen (NXY), but Canada was the key risk as NXY's assets in the U.S. are not material and the British government is investor-friendly, Macquarie analysts say. The U.S. approval process may prove "noisy and emotive in the press," but ultimately the deal will be cleared. NXY +14.6% premarket.
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Company Description
CNOOC Ltd is an oil and gas company. The Company along with its subsidiaries is engaged in the exploration, development, production and sale of crude oil, natural gas and other petroleum products.
Country: China