> CNOOC Global > Overseas Business > CNOOC Ltd.

Overseas Business

In 2016, CNOOC paid high attention to the stable operation of overseas business, kept optimizing overseas business management mechanism and kept great operation performance. The overseas assets contributed to 38.8% of the total assets by the end of year.

CNOOC Ltd. continued to be well recognized by the international capital market. It continued to be listed in the annual “Platts Energy Top 250” and was awarded again the honorable titles of “The Best Investor Relations Company (China)”, “The Best Corporate Governance”, “The Best CEO in Asia (Investor Relations)” by the journal Corporate Governance Asia in 2016. In addition, it was awarded the titles of “Annual Enterprise Awards-Platinum Award” by The Asset and “The Listed Company with the Most Valuable Brand Value” of “Golden Bauhina Awards” by Ta Kung Pao . CNOOC Ltd. Chairman Yang Hua won the prize of “The Most Influential Leader of the Listed Company” of “Golden Bauhina Awards” released by Ta Kung Pao . In 2016, the overseas crude oil output of the Company was 31.42 million tons, and the natural gas output was 11.57 billion cubic meters.

  • Asia
    • Asia (excluding China) was the first overseas region that the company entered into and has become one of its major overseas oil and gas producing areas. Currently, the company holds oil and gas assets mainly in Indonesia and Iraq. As of the end of 2016, the reserves and daily production volume derived from Asia (excluding China) reached 245.0 million BOE and 75,780 BOE/day, respectively, representing approximately 6.3% and 5.8% of the company’s total reserves and daily production, respectively


      As of the end of 2016, the company’s asset portfolio in Indonesia consisted of three development and production blocks and a block under construction, among which, the company acted as the operator for the Southeast Sumatra block, while the Madura Strait PSC was a joint operation block, in which the BD gas field is planned to commence production in 2017. In addition, the Company, as a non-operator, also holds working interests in the production sharing contracts in Malacca PSC.

      The company owns approximately 13.90% interest in the Tangguh LNG Project in Indonesia. In 2016, production volume of phase I of the Project remained stable. Currently, the investment decision for the third LNG train of phase II is completed, and the project is now in the construction stage and is expected to be completed and commence production in 2020.


      The company holds 63.75% participating interest in the technical service contract of Missan oilfields in Iraq and acts as the lead contractor of these oilfields.

      In 2016, the company continuously drilled development wells, increased workload, implementing water injection plan and reinforced management of operation and maintenance under the Iraq project, resulting in a steady increase of daily net production to approximately 33,000 barrels per day.

  • Oceania
    • Currently, the company’s oil and gas assets in Oceania are mainly located in Australia and Papua New Guinea. As of the end of 2016, the reserves and daily production volume derived from Oceania reached 77.4 million BOE and 26,107 BOE/day, respectively, representing approximately 2.0% and 2.0% of the company’s total reserves and daily production, respectively.


      The company owns 5.3% interest in the Australian North West Shelf LNG Project. The project has commenced production and is currently supplying gas to end-users including the Dapeng LNG Terminal in Guangdong, China.

      In 2016, the North West Shelf LNG Project generated stable production and achieved favorable economic returns.

      The company also owns one exploration block in Australia, which is currently under appraisal.

      Other Regions in Oceania

      The company owns interests in four blocks which are still under exploration in Papua New Guinea and a joint research block in New Zealand.

  • Africa
    • Africa is one of the relatively large oil and gas reserves and production base for the company. The company’s assets in Africa are primarily located in Nigeria and Uganda. As of the end of 2016, the reserves and daily production volume derived from Africa reached 138.0 million BOE and 80,297 BOE/day, respectively, representing approximately 3.6% and 6.2% of the company’s total reserves and daily production, respectively.


      The company owns 45% interest in the OML130 block in Nigeria. OML130 is a deepwater project comprised of four oilfi elds, namely, Akpo, Egina, Egina South and Preowei.

      In 2016, the Akpo oilfield maintained stable production. Through infill drillings and optimization measures, its net production reached approximately 62,000 barrels per day, with record low operating cost per barrel. The Egina project is in the engineering construction stage and is currently drilling development wells and constructing production facilities such as FPSO.

      In addition, Nexen Petroleum Nigeria Limited holds a 20% non-operating interest in Usan oilfield in the OML138 block in offshore Nigeria, together with a number of other discoveries and exploration targets. Nexen Petroleum Exploration & Production Nigeria Limited and Nexen Petroleum Deepwater Nigeria Limited hold an 18% non-operating interest in the OPL 223 and OML 139 PSC, respectively. In 2016, new discovery was made in the exploration of Owowo West structure in deepwater Nigeria.

      The company plans to utilize the synergy of Usan and OML130 projects to establish an oil and gas production base in West Africa.


      The company owns one-third of the interest in each of EA 1, EA 2 and EA 3A in Uganda. EA 1, EA 2 and EA 3A are located at Lake Albert Basin in Uganda, which is one of the most promising basins for oil and gas resources in Africa.

      In 2016, the company, as the operator of EA 3A, made further optimization and research on the developing plan of the Kingfisher oilfield with cost reduction and efficiency enhancement as the core mission.

      In 2016, government’s development and production licenses were obtained for 8 oilfields in the EA1 and EA2 blocks. In 2016, the route plan of oil pipeline in Uganda was confirmed, laying the foundation for accelerated development of the oilfields.

      Other Regions in Africa

      Apart from Nigeria and Uganda, the company also owns interests in several blocks in the Republic of The Congo, Algeria and the Gabonese Republic. In 2016, after drilling and appraisal, the REZ structure in Algeria was proven to be one of the major discoveries of the region in recent years.

  • North America
    • North America has become the biggest overseas reserves and production region of the company. The company holds interests in oil and gas assets in the U.S., Canada and Trinidad and Tobago, as well as part of the shares of MEG Energy Corporation in Canada. As of the end of 2016, the company’s reserves and daily production volume derived from North America reached 619.1 million BOE and 117,738 BOE/day, respectively, representing approximately 16.0% and 9.0% of the Company’s total reserves and daily production, respectively.

      The U.S.

      The company currently holds 27% and 13% interest in two shale oil and gas projects in the U.S., namely the Eagle Ford and Niobrara shale oil and gas projects respectively.

      In 2016, as the number of wells drilled decreased under the low oil price environment, the net production of the Eagle Ford project decreased and averaged approximately 53,000 BOE/day. Under the current low oil price environment, our operators have slowed down asset development, which would impact our near-term production.

      In addition, the company owns interest in two major deepwater developments, Stampede and Appomattox, and a number of other exploration blocks in the U.S. Gulf of Mexico, through its wholly-owned subsidiary, Nexen Energy ULC (“Nexen”).


      Canada is one of the world’s major regions with rich oil sands resources, participation in oil sands development will be favorable to the sustainable growth of the company. In Canada, the Company, through its subsidiary, Nexen, owns 100% working interest in the oil sands project located at the Long Lake as well as three other oil sands leases in the Athabasca region in northeastern Alberta. We also hold a 7.23% interest in the Syncrude project and a 25% interest in several other non-operated exploration and development leases.

      In 2016, the company continued the development of the Long Lake project. Its net production averaged approximately 21,000 BOE/day. For the oil sands project in Canada, under the low oil price environment, the company will leverage on its overall advantages, lower cost and enhance efficiency, and control the pace of investment to provide a solid resource safeguard for its long-term development.

      In addition, the company holds approximately 12.39% of the shares of MEG Energy Corporation in Canada, which is listed on the Toronto Stock Exchange.

      Other Regions in North America

      The company owns 12.5% interest in the 2C block and a 12.75% interest in the 3A block in Trinidad and Tobago, respectively, of which the 2C block is in production. The engineering construction of phase III of the natural gas project progressed smoothly and was completed with production commenced in the second half of 2016. In addition, the company owns 100% exploration interest in the deepwater exploration blocks 1 and 4 of the Perdido Fold Belt in Mexico.

  • South America
    • In South America, the company mainly holds a 50% interest in Bridas Corporation (“Bridas”) and a 10% interest in the PSC of the Libra oilfi eld in Brazil, among which, the company’s 50% interest in Bridas is accounted for by equity methods. As of the end of 2016, the company’s reserves and daily production volume derived from South America reached 293.9 million BOE and 48,548 BOE/day, respectively, representing approximately 7.6% and 3.7% of the company’s total reserves and daily production, respectively.


      The company holds a 50% interest in Bridas and makes joint management decisions. Bridas holds 40% interest in Pan American Energy (“PAE”) in Argentina and 100% interest in AXION Refinery. Bridas engages in upstream oil and gas exploration and production activities as well as downstream refining activities in Argentina and other countries. The strength of upstream and downstream integration is gradually realized.

      In 2016, under the low oil price environment, the company sought balance between production and returns, enhanced operating efficiency, optimized operating plans and innovated development plans. The daily net production of Bridas averaged approximately 48,000 BOE/day. The downstream refinery maintains a high level of operation capacity and is implementing quality improvement project according to clean energy requirements of the government.


      The company holds a 10% interest in the Libra PSC, a deepwater pre-salt project in Brazil. The oilfield is located in the Santos Basin, with a block area of about 1,550 square kilometers and water depth of about 2,000 meters.

      In 2016, the company drilled five appraisal wells in the Libra northwestern block which further increased the reserve.

      Brazil is one of the world’s most important deepwater oil and gas development regions. The company will fully leverage on the development opportunities of the Libra project in Brazil to seek a new driver for production growth.

      Other Regions in South America

      The company also holds interests in several exploration and production blocks in Colombia and interests in Stabroek exploration block offshore Guyana.

  • Europe
    • The company holds interests in several oil and gas fields such as Buzzard and Golden Eagle in the North Sea. As of the end of 2016, the company’s reserves and daily production volume derived from Europe reached 81.8 million BOE and 104,473 BOE/day, respectively, representing approximately 2.1% and 8.0% of the company’s total reserves and daily production, respectively.

      United Kingdom

      The company’s asset portfolio in the North Sea consists of projects under production, development and exploration, mainly including: a 43.2% interest in the Buzzard oilfield, one of the largest oilfields in the North Sea, and a 36.5% interest in the Golden Eagle oilfield, making the company the largest crude oil operator in the North Sea.

      The United Kingdom is one of the company’s key overseas areas, as several key projects such as Buzzard and Golden Eagle have contributed considerably to the company’s production. In 2016, the net production of Buzzard oilfield averaged approximately 66,000 barrels per day. In the future, we will continue to intensify our efforts in the oil and gas development in the UK, and actively look for exploration and development blocks with potential in order to achieve a stable and sustainable development in the region.

      Other Regions in Europe

      The company holds a license issued by the government of Iceland for carrying out oil exploration operations in the Norwegian Sea, Northeast Iceland. In 2016, the project is at exploration and appraisal stage and has preliminary completed the processing and interpretation of newly acquired 2D seismic data.

> Annual Reports
CNOOC Annual Report 2016
> What We Do
> News Releases
Produced By 大汉网络 大汉版通发布系统