CNOOC offers cooperation deals on 13 sea oil blocks
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In its first tender of the year, China National Offshore Oil Corporation (CNOOC) announced Friday that it is making 13 offshore blocks in the South China Sea available for operation in conjunction with foreign firms.
The 13 blocks, in water 18- 300 meters deep, cover an area of 41,713 square kilometers, the company said in a statement on its website.
"CNOOC is severely short of deep sea exploration technologies, and foreign petrol companies need to enter the oil-hungry Chinese market," said Zhong Jian, an analyst with Shanghai based Toprise Information & Technology.
China National Offshore Oil Corporation is the third-largest oil company in China, following CNPC and Sinopec. The State-owned company focuses on oil and natural gas exploration and refining in China's sea areas. Listed in Hong Kong and New York, CNOOC is viewed by analysts as being the Chinese oil company most interested in making acquisitions this year as it races to meet its aggressive production growth targets.
China's first quarter oil demand increased 1.25 million barrels, while oil demand in Asia and the Middle East increased 2.4 million barrels.
CNOOC has adopted a 21-28 percent annual growth target this year, higher than the annual growth targets for international oil giants, including BP and Royal Dutch Shell, which scaled back targets last year when oil prices were falling.
CNOOC normally cooperates with foreign companies to explore for offshore oil and gas due to money or technology shortfalls. China's oil exploration capabilities in the South China Sea are now limited to the shallow continental shelf areas off South China's Guangdong and Hainan provinces.
CNOOC released its first quarter earnings results recently, saying its total revenue rose 118.5 percent to 30.49 billion yuan ($4.47 billion) in the first quarter, from oil equivalent output of 67.3 million barrels, an increase of 31.9 percent from 2009.
"Cooperation with multinational oil companies can reduce risk and enhance competitiveness for the Chinese parties," said Wang Zhen, business administration director of China Petroleum University. "At the same time, Chinese companies can learn advanced technology and management skills from international oil peers."
"CNOOC will increase investment in the oil and gas explorations in the South China Sea, which hold immeasurable potential oil and gas reserves," said Li Fanrong, general manager of the Shenzhen Branch of CNOOC.
