CNOOC Limited's Bozhong 26-6 Oilfield: A New Dawn in Offshore Development

CNOOC Limited (SEHK: 00883, SSE: 600938), China's largest offshore crude oil and natural gas producer, has announced the commencement of production at the Bozhong 26-6 Oilfield Development Project (Phase I). This significant milestone not only marks a new stage in the company's offshore deep play complicated buried hill oil and gas reservoirs development but also bolsters its energy supply capacity and low-carbon development in the Beijing-Tianjin-Hebei and Bohai Rim regions.

The Bozhong 26-6 Oilfield is the world's largest metamorphic buried hill oilfield, with cumulative proven oil and gas in-place reserves of over 200 million cubic meters. The project, which took only three years from discovery to production, demonstrates the rapid conversion of reserves to production, thanks to the application of standardized engineering. The main production facilities include a new central processing platform and an unmanned wellhead platform, with a total of 33 development wells planned to be commissioned.

The project is expected to achieve a peak production of approximately 22,300 barrels of oil equivalent per day in 2025, contributing to CNOOC Limited's goal of exceeding 2 million barrels of oil equivalent (BOE) per day in net production. Additionally, the project is expected to bury approximately 1.5 million tons of carbon dioxide throughout its life cycle, demonstrating the company's commitment to reducing emissions and addressing climate change.

CNOOC Limited's CEO, Mr. Zhou Xinhuai, stated, "In the first three quarters of 2024, CNOOC Limited continued to increase its reserves and production, while effectively controlling costs and enhancing efficiency. Net production and net profit rose remarkably year over year, both hitting record highs for the same period in history." The company's strong performance is a testament to its commitment to high-quality development and sustainable growth.

The successful commencement of the Bozhong 26-6 Oilfield Development Project (Phase I) is a significant step forward in CNOOC Limited's overall production and reserve growth strategy. The project, along with other important new projects such as Kenli 10-2 Oilfields Development Project (Phase I) in China, Yellowtail Project in Guyana, and Buzios7 Project in Brazil, will help the company achieve its net production targets for the years 2025 to 2027.

In conclusion, CNOOC Limited's Bozhong 26-6 Oilfield Development Project (Phase I) is a shining example of the company's commitment to innovation, sustainability, and high-quality development. The project not only contributes to the company's production and reserve growth but also demonstrates its dedication to reducing emissions and addressing climate change. As CNOOC Limited continues to push forward with its three key programs of increasing reserves and production, technological innovation, and green development, investors can expect the company to maintain its strong performance and create value for shareholders.

Rating: Buy (Reiterated).