Eastern South China Sea News

Cnooc Ltd., China’s biggest offshore oil and gas explorer, posted a 56 percent decline in profit for the first half of this year. Net income dropped to 14.73 billion yuan ($2.3 billion), or 0.33 yuan a share, from 33.59 billion yuan, or 0.75 yuan, a year earlier, the Beijing-based explorer said in a statement to the Hong Kong stock exchange Wednesday. That exceeded the 13.9-billion yuan average of three analyst estimates compiled by Bloomberg. Despite profit fall, the company kept its dividend payout the same as the year-earlier level. Planned capital expenditure reduction by about 30 billion yuan this year and first-half savings of 12 billion yuan on an oil production tax helped offset lower cash inflows due to lower oil prices.

China is sending four oil rigs into the South China Sea in a sign that Beijing its stepping up its exploration for oil and gas in the tense region, less than two months after it positioned a giant drilling platform in waters claimed by Vietnam. Coordinates posted on the website of China's Maritime Safety Administration showed the Nanhai number 2 and 5 rigs would be deployed roughly between southern China and the Pratas islands, which are occupied by Taiwan. The Nanhai 4 rig would be towed close to the Chinese coast. The agency, which did not say who owns the rigs, said all three would be in place by Aug. 12. Earlier this week, it gave coordinates for a fourth rig, the Nanhai 9, which would be positioned just outside Vietnam's exclusive economic zone by Friday.

CNOOC has it in mind to order 14 medium & small-sized LNG ships from Chinese shipyards. The Group is China’s largest producer of offshore crude oil and natural gas and one of the largest independent oil and gas exploration and production companies in the world. It mainly engages in exploration, development, production and sales of oil and natural gas. The Group’s core operation areas are Bohai, Western South China Sea, Eastern South China Sea and East China Sea in offshore China. In overseas, the Group has oil and gas assets in Asia, Africa, North America, South America and Oceania. CNOOC plans to order four 30,000 cu m LNG vessels and ten 10…

China National Offshore Oil Corporation (CNOOC) signed a production sharing contract (PSC) with Devon Energy Corporation for deepwater block 42/05. Block 42/05, located in Baiyun Sag of Pearl River Mouth Basin in the Eastern South China Sea, covers a total area of 6,939 square km. with water depth ranging from 300 to 2000 m. The company has acquired 2-D seismic data in the block. Under the terms of the contract, Devon is committed to conduct a 3-D seismic survey and wildcat drilling during the exploration period. All expenditures incurred during exploration period will be borne by Devon. CNOOC Ltd., a subsidiary of CNOOC, has the right to participate in up to a 51% interests in the event of any commercial discovery in the block.

China National Offshore Oil Company Limited (CNOOC) announced that its independent oil field in the Eastern South China Sea has come on stream successfully, according to a China View report. The oil field, Lufeng (LF) 13-2, is flowing 18,000 barrels of oil per day from three horizontal wells. The production capacity of these wells is tested at 30,000 barrels of oil per day. Major production facilities of the project include a wellhead production platform, a 12-km subsea pipeline and cables. The crude will be transported to and processed in LF13-1. So far, the Eastern South China Sea has seen its annual oil and gas yield surpass 10 million cubic meters for 10 consecutive years and has become the fourth largest oil field of the country. Source: China View