Chinese offshore pure play oil and gas exploration and production (E&P) company, CNOOC Ltd. (CEO) announced that its subsea natural gas pipeline at Zhuhai Terminal has resumed operations. The pipeline was closed for repair work after it leaked in Dec 2011.
The subsea natural gas pipeline of Zhuhai Terminal ruptured due to external forces and ended up in a leakage. Following rigorous repairs, CNOOC completed temporary restoration work in mid Jan 2012 and gas supplies at less than half capacity started again. Currently, the company has resumed normal production and started providing the natural gas to its customers.
Located in a place that faced rigorous weather conditions, the leakage point posed several challenges to the regular engineering resources and operational techniques. The restoration team attained zero failure rates by using pioneering construction methods as well as intensifying quality control and brought the pipeline online once again.
Zhuhai Terminal serves as the gas processing terminal for the joint development of the natural gas project of both PY30-1 gas field and HZ oil and gas field. It is situated in the Hengqin island of Zhuhai city. The average daily yield of the two fields was around 26,700 barrels of oil equivalent prior to the incident. This production that was provided to the terminal was completely closed for a month after the leak.
CNOOC is one of the three leading oil companies in China and among 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 Ltd. is the only company permitted to conduct exploration and production activities with international oil and gas companies off the shores of China. The Chinese government owns 64.41% stake in the company by virtue of its ownership of CNOOC (China National Offshore Oil Corporation).
CNOOC carries a Zacks Rank #3 (Hold). However, there are other Zacks Ranked #1 (Strong Buy) stocks – Hornbech Offshore Services, Inc. (HOS), Newpark Resources Inc. (NR) and Gulfmark Offshore, Inc. (GLF) – that are expected to perform impressively over the short term.
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