China National Offshore Oil Corporation
This article needs to be updated.(July 2012) |
CEO) | |
Revenue | 715,249,360,000 renminbi (2018) |
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Subsidiaries | CNOOC Limited China Oilfield Services |
Website | www |
China National Offshore Oil Corporation | |
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Hanyu Pinyin | Zhōngguó Háiyáng Shíyóu Zǒnggōngsī |
China National Offshore Oil Corporation, or CNOOC Group (
The company is owned by the government of the People's Republic of China, and the
History
When the State Council implemented the regulation of the people's petroleum resources in cooperation with foreign enterprises on January 30, 1982, CNOOC was incorporated and authorized to assume overall responsibility for the exploitation of oil and gas resources of offshore China in cooperation with foreign partners, which ensured monopoly status for CNOOC in offshore oil and natural gas. With its headquarters in Beijing, CNOOC registered with capital of RMB 94.9 billion and has more than 98,750 employees.[3]
Following the 2022 Russian invasion of Ukraine the company continued doing business in Russia. For this reason Ukraine listed CNOOC as an International Sponsor of War.[4]
Unocal buyout attempt
In June 2005, a CNOOC Group company (NYSE and Hong Kong-listed public company CNOOC limited) made an $18.5 billion cash offer for American oil company
Despite a hands-off approach from the
The company was advised by Goldman Sachs.[10] CNOOC Limited had a reputation for acting independently of the Chinese government, and had not notified government officials before bidding for UNOCAL.[10] The political backlash in the United States caused the Chinese government to increase its oversight of Chinese companies, to avoid future risks to Sino-American relations.[10]
CNOOC Limited faces challenges in the domestic market. Its rivals, CNPC and Sinopec, have been permitted to conduct offshore exploration once monopolized by CNOOC Limited. In accordance with the commitment by the Chinese government to join the
In conjunction with 2009 failed deal between Aluminum Corporation of China Limited and mining giant Rio Tinto, CNOOC's failed UNOCAL deal was perceived in China as part of a coordinated effort in the West to hinder China's economic growth.[5]
Nexen acquisition
Adding 61 percent to Nexen's July 20, 2012 stock price, on July 23 CNOOC agreed to buy
2014 onwards
In June 2014, CNOOC agreed a deal with BP worth around $20 billion that would see the latter supplying the former with liquefied natural gas.[16]
On June 5, 2018, CNOOC Gas and Power Group Co. Ltd., a subsidiary of China National Offshore Oil Corporation (CNOOC), China's largest LNG importer and terminal operator, has recently signed a memorandum of understanding (MOU) with the Philippine fuel retailer Phoenix Petroleum to study, plan, and develop a liquefied natural gas (LNG) receiving terminal project in the Philippines.[17]
In September 2018, it also signed a memorandum of understanding with
In 2019, CNOOC was awarded the Theoretical Technology and Major Discoveries of Deep Large-scale Condensate Gas Field Exploration in the Bohai Bay Basin by the National Award for Science and Technology Progress, a state-level science and technology award established by the Chinese State Council.[19] [20]
In August 2023, CNOOC and
In May 2023, CNOOC reported that a demonstration project of a deep-sea floating wind farm «Haiyou Guanlan», located near the Wenchang oil fields in the west of the
Operations
This part includes a improve this part by introducing more precise citations. (May 2023) ) |
CNOOC operates in six business sectors: exploration and development of oil and gas; technical services; logistic; chemical and fertilizer production; natural gas and power generation, and financial services and insurance.[
The exploration and production of oil and gas grew steadily in 2004. Output reached 36.48 million tons of oil equivalent, increasing 3.12 million tons (nine percent) over 2003. Domestic production was 24.72 million tons, an 11-percent increase from the previous year and higher than the average national growth rate of three percent. The annual output in Bohai Bay exceeded 10 million tons of oil equivalent for the first time, making it the second offshore area producing over 10 million tons (after the Eastern South Sea) and an energy-production base in northern China.[citation needed]
CNOOC has established CNOOC Gas and Power, which focuses on gas distribution and power generation. CNOOC has become China's dominant producer of
In April 2004, the Ministry of Commerce authorized CNOOC-SINOPEC United International Trading to import crude oil; CNPC, Sinopec,
CNOOC Limited's share price rose by 37 percent in 2004, and its market capitalization reached RMB181.68 billion. CNOOC Engineering's share price on the Shanghai Stock Exchange rose by 66.11 percent, and the market capitalization of China Oilfield Services reached RMB10.1 billion. At the end of 2004 market capitalization of the three subsidiaries had approached RMB200 billion, 3.3 times their net assets.[citation needed] The company continued its operations in oil and gas exploration and development, exploitation of overseas resources, development of midstream and downstream business and modernization in 2005 with its goal an integrated, modern, competitive and profitable energy company by 2008.[citation needed]
Under ex-CEO Wei Liucheng (who was promoted to the governor of Hainan province in October 2003) and chairman and chief executive Fu Chengyu (傅成玉), CNOOC undertook a number of mergers and acquisitions. It acquired five blocks in Indonesia from Spanish oil company Repsol in 2002, becoming its largest offshore operator. In 2003, it bought 5.3 percent of the NWS, ensuring supplies for the Guangdong LNG project; that year, it also acquired 12.5 percent of Tangguh to ensure supply to the Fujian LNG project. CNOOC tried to acquire 12.5 percent of Australia's Gorgon field to ensure supply to the Shanghai and Zhejiang LNG projects, but the parties could not agree on a price.[citation needed]
According to
In 2010, CNOOC began to auction oil blocks in the Wushi oil field off Zhanjiang, a region yet unprospected with rich oil reserves.[26]
LNG terminals
CNOOC brought LNG to China with its Dapeng LNG Terminal in Guangdong, which received its first shipment (from the NWS LNG project in Australia) in July 2006.
Name | Location | Start date | Capacity (MTPA) | CNOOC share |
---|---|---|---|---|
Dapeng LNG | Guangdong | 2006 | 3.7 | 33% |
Putian LNG | Fujian | 2007 | 2.6 | 60% |
Yangshan LNG | Shanghai | 2008 | 3.0 | 45% |
Ningbo LNG | Zhejiang | 2009 | 3.0 | 51% |
Hainan LNG | Hainan | 2009 | 3.0 | 65% |
Qinhuangdao LNG | Hebei | 2010 | 2.0 | N/A |
Binhai LNG | Jiangsu | 2010– | 3.0 | N/A |
Yingkou LNG | Liaoning | 2010– | 3.0 | N/A |
Zhuhai LNG | Guangdong | 2010– | N/A | N/A |
Operations in Africa
As of 2023, 2% of CNOOC's reserves are located in Africa and 5% of CNOOC's daily production comes from Africa.[27]: 165 In Uganda, CNOOC has partnered with Total and Tullow Oil to develop the Lake Albert basin deposit, where CNOCC is also the operator. A CNOCC subsidiary owns part of multiple enterprises in Nigeria, and stakes in enterprises in Senegal, Republic of Congo, Algeria, and Gabon.[27]: 165
Also as of 2023, CNOCC has planned a liquified natural gas plant in Mozambique.[27]: 165 CNOCC has a contract to buy much of the liquid natural to be produced at the plant.[27]: 165
Controversy
Drug-trafficking ties
In October 2004, contract-sharing was negotiated in Burma by Myanmar Oil and Gas Enterprise, China Huanqiu Contracting and Engineering Corporation and CNOOC's
Human-rights abuses in Burma
In 2007, CNOOC was involved in a clash with
In 2008, CNOOC was accused of abuses of
Falun Gong persecution
CNOOC has been accused of participating in the
Bohai Bay oil spills
On June 4, 2011, the U.S. company ConocoPhillips, operating in the Penglai 19-3 oilfield, caused an oil spill from a seafloor leak which lasted until June 7.[35] This was followed by a second leak on June 17, which was contained within 48 hours.[36] The leaks polluted a total of more than 840 square kilometers of clean water in Bohai Bay.[37] Fifty-one percent of the oilfield is owned by CNOOC, and forty-nine percent owned by ConocoPhillips.[36] The first leak was not made public until July 5, 2011.[37]
Another fire and oil spill is taking place since April 6, 2021, with workers missing.[38]
Huizhou refinery explosion
On July 11, 2011, an explosion occurred at the Huizhou refinery in the Daya Bay Economic and Technical Development zone in Guangdong. The refinery is 40 kilometres (25 mi) from the Daya Bay Nuclear Power Plant.[39]
U.S. sanctions
In December 2020, the United States Department of Defense named CNOOC as a company "owned or controlled" by the People's Liberation Army and thereby prohibited from receiving any American investment.[40] In response to the executive order, in February 2021, NYSE commenced the process of delisting CNOOC.[41]
References
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- ^ Ukraine designates China’s biggest oil firms as ‘sponsors of war’ for Russian joint ventures
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- ^ BP to sign $20 billion LNG supply deal with China's CNOOC, International: Reuters, 2014, archived from the original on 2015-09-29, retrieved 2017-06-30
- ^ "Philippine fuel retailer Phoenix Petroleum, CNOOC Gas and Power Group sign MOU for LNG project". Phoenix Petroleum. Archived from the original on 2018-06-10. Retrieved 2018-06-10.
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- ^ a b c "Treasury Sanctions On Myanmar Traffickers Implicate CNOOC". Forbes.com. 2008-02-27. Archived from the original on 2012-01-18. Retrieved 2011-07-10.
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{{cite web}}
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- ^ a b F_129. "China needs zero tolerance for concealing major accidents". People's Daily. Archived from the original on 2011-07-11. Retrieved 2011-07-10.
{{cite web}}
: CS1 maint: numeric names: authors list (link) - ^ "Fire, oil spill at China's offshore Penglai platform". www.argusmedia.com. 2021-04-08. Retrieved 2021-04-08.
- ^ South China morning post. 13 July 2011. CNOOC reports third oil spill into Bohai Bay in less than two months
- ^ Alper, Alexandra; Pamuk, Humeyra (2020-12-03). "Trump administration adds China's SMIC and CNOOC to Defense blacklist". Reuters. Retrieved 2020-12-04.
- ^ Khan, Shariq (2021-02-26). "NYSE starts move to delist Chinese state oil producer CNOOC". Reuters. Retrieved 2021-02-26.