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CNOOC (CEO) Begins Production in China Deepwater Gas Field

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CNOOC Limited CEO announced the commencement of production from the Liuhua 29-2 deepwater gas field in the eastern South China Sea.

The Liuhua 29-2 gas field is situated 300 kilometers southeast of Hong Kong, nearly 750 meters below the water surface. Notably, it is the third deepwater offshore platform development for CNOOC. The state-owned firm is the operator of the field, with a 100% ownership interest.

The gas field involves a new subsea wellhead, which has been constructed with one development well with the intent of utilizing the existing production facilities of Liwan 3-1 gas field and other deepwater gas fields.

The Liwan 3-1 gas field is an integral part of the Liwan gas project to which the Liuhua 29-2 field is associated. Located in Block 29/26, it is the first deepwater gas field development in China. Notably, the Liwan offshore gas field was discovered in 2006 and has been in production since March 2014.

CNOOC mentioned that the Liuhua 29-2 gas field will provide plenty of clean energy supplies and is expected to address the increasing natural gas demand of the Guangdong-Hong Kong-Macao Greater Bay Area. At its peak, the field is expected to churn out 41 million cubic feet of natural gas per day in 2021.

Notably, it will also help CNOOC to increase the natural gas share in total output from the current 19% to 30% by 2025.

Company Profile

Headquartered in Hong Kong, China, CNOOC is an upstream company, which primarily engages in the exploration, development and production of crude oil and natural gas offshore China.

Zacks Rank & Other Stocks to Consider

The company currently has a Zack Rank #2 (Buy).

Some other top-ranked players in the energy space are Diamondback Energy, Inc. FANG, Whiting Petroleum Corporation WLL and NexTier Oilfield Solutions Inc NEX. Diamondback and Whiting Petroleum currently sport a Zacks Rank #1 (Strong Buy), while NexTier carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Diamondback’s earnings for 2021 are expected to increase 24.2% year over year.

Whiting Petroleum’s earnings for 2021 are expected to rise 7.6% year over year.

NexTier’s earnings for 2021 are expected to surge 67.8% year over year.

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CNOOC Limited (CEO) : Free Stock Analysis Report
 
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
 
Whiting Petroleum Corporation (WLL) : Free Stock Analysis Report
 
NexTier Oilfield Solutions Inc. (NEX) : Free Stock Analysis Report
 
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