Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Toronto Stock Exchange  >  Husky Energy Inc.    HSE   CA4480551031

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

CHINA ENERGY WATCH: Cnooc Drills Deep Without Foreign Help

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/09/2012 | 12:22pm CEST

-- Cnooc starts first deepwater semi-submersible drilling rig

-- Taking other steps to become independent in deepwater exploration

-- One-third of China's oil and gas reserves located in South China Sea

 
   By Wayne Ma 
   Of  
 

China National Offshore Oil Corp. has begun exploring deepwater oil blocks without the help of foreign partners, partly due to the high risk and cost of exploration and production, which has discouraged foreign investment.

Wednesday marks the official start of Cnooc's first deepwater semi-submersible drilling rig, the HYSY 981, which is capable of drilling to a depth of 3,000 meters. Cnooc has typically relied on foreign partners such as Canada's Husky Energy Inc. (HSE.T), U.S.-based Chevron Corp. (CVX) and U.K.-based BG Group (BG.LN) to explore and operate deepwater blocks off China.

Although Husky achieved considerable success finding deepwater gas in the Liwan 3-1 field in 2006, the lack of seismic data, the high cost of drilling exploratory wells and less-than-lucrative contract terms have discouraged foreign companies from partnering to develop China's deepwater blocks.

Last year, Cnooc publicly offered its first deepwater oil blocks to foreigners, but only Italian oil major Eni SpA (E) made a successful bid, announcing in April that it signed a production-sharing contract with Cnooc for a block located 400 kilometers off Hong Kong.

Four other deepwater blocks, two of which may be in disputed Vietnamese waters, are still open to foreign partners.

High international oil prices and the "increasingly severe state" of China's oil and gas reserves have spurred the search for oil and gas in new areas, Cnooc Chairman Wang Yilin said Wednesday in a statement commemorating the deepwater rig's formal start of operations.

China's dependence on foreign oil rose to 56.3% last year, and its dependence on natural gas imports rose to 21.5%, he added.

In addition to building its first deepwater rig, Cnooc has been taking other steps to become independent in deepwater exploration and production.

For instance, it plans to operate its first deepwater field as part of a joint venture with BP PLC (BP.LN) and U.S.-based Anadarko Petroleum Corp. (APC). The company, which usually makes foreign partners assume 100% of the exploration risk, will take a 9.18% stake in the exploration phase for the first time, a sign it's more comfortable with its capabilities.

Cnooc's first deepwater rig completed test drilling at the Liuhua 29-2-1 well in early March and formally began drilling the Liwan 6-1-1 well at a depth of 1,500 meters on Wednesday.

A third of China's oil and gas reserves are located in the South China Sea and 70% of those reserves are located in a 1.537 million square kilometer deepwater area, Wang said.

"Harsh environments, technological difficulties and high costs have prevented much of these resources from being exploited," he said.

-By Wayne Ma, Dow Jones Newswires; +86 10 8400 7714; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HUSKY ENERGY INC.
06/21 HUSKY ENERGY : Conservative MP asks ethics watchdog to reconsider OK'ing Husky E..
06/17 HUSKY ENERGY : hired Natural Resource Minister Jim Carr`s ex-chief of staff
06/15 HUSKY ENERGY : hired Natural Resource Minister Jim Carr's former chief of staff
06/13 HUSKY ENERGY : Chuckwagon racer in Saskatchewan sues Husky Oil over death, injur..
05/31 HUSKY ENERGY : to Expand White Rose Oilfield Development
05/31 HUSKY ENERGY : Five year plan provides Husky Energy growth despite modest crude ..
05/30 HUSKY ENERGY : Five-year plan provides Husky Energy growth despite modest crude ..
05/30 Husky to Present Five-Year Growth Plan at Investor Day
05/30 HUSKY ENERGY : moving forward on $2.2B White Rose offshore oil project
05/29 HUSKY ENERGY : Anticipates Better Fortunes with West White Rose Project
More news
Sector news : Oil & Gas Exploration and Production - NEC
06/22 Canada's Cenovus facing tough market for critical asset sales
06/21 Norway offers record number of blocks for Arctic oil exploration
06/19 EQT : Oil and gas producer EQT to buy Rice Energy in $6.7 billion deal
06/13DJCorrection to Energy Companies Story
06/13DJEnergy Companies Seek Out Deal Makers
More sector news : Oil & Gas Exploration and Production - NEC
News from SeekingAlpha
05/31 Husky Energy (HUSKF) Investor Presentation - Slideshow
05/30 Husky Energy approves West White Rose project off Canada's Atlantic coast
05/19 Trapeze Asset Management 1Q17 Letter - Equilibrium
05/05 Husky's (HUSKF) CEO Rob Peabody on Q1 2017 Results - Earnings Call Transcript
05/05 Husky Energy up on Q1 earnings beat but delays dividend restart
Advertisement
Financials ( CAD)
Sales 2017 18 194 M
EBIT 2017 823 M
Net income 2017 625 M
Debt 2017 3 527 M
Yield 2017 0,37%
P/E ratio 2017 28,16
P/E ratio 2018 24,39
EV / Sales 2017 1,05x
EV / Sales 2018 1,02x
Capitalization 15 574 M
More Financials
Chart HUSKY ENERGY INC.
Duration : Period :
Husky Energy Inc. Technical Analysis Chart | HSE | CA4480551031 | 4-Traders
Full-screen chart
Technical analysis trends HUSKY ENERGY INC.
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 18,5  CAD
Spread / Average Target 20%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Robert J. Peabody President, Chief Executive Officer & Director
Tzar Kuoi Li Co-Chairman
Kin Ning Fok Co-Chairman
Robert W. Symonds Chief Operating Officer
Jonathan McKenzie Chief Financial Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
HUSKY ENERGY INC.-7.90%11 685
CONOCOPHILLIPS-10.35%56 684
EOG RESOURCES INC-13.83%50 713
CNOOC LTD-11.61%49 264
OCCIDENTAL PETROLEUM C..-14.68%46 464
WILLIAMS PARTNERS LP-2.68%35 808
More Results