I really like the stock action (of late) and prospects (longer term) for
CNOOC (CEO) - the portfolio is just busting to the gills with positions; this is the only reason I have not added this name. (I have been adding to
Petrobas (PBR) instead)
Some news out earlier this week, as this company is turning very much into a "major" with its expansion from pure E&P type of company to refining. Unfortunately with the fuel price caps in China, refining margins stink so I am not that bullish on this move overall - I was hoping they'd stick as a pure play exploration and production company, which I why I like them more than
PetroChina (PTR) and
China Petro & Chem (SNP). [
Chinese Oil is Flying] But for the "very very" long run, it could be considered a good move.
- CNOOC's first oil refinery is on track to start operating in October and the Chinese state oil firm plans to add more processing facilities to establish itself as the country's third-largest refiner, company officials said.
- The parent of listed CNOOC Ltd (CEO) has also signed a preliminary deal to invest in eastern Shandong province and has set its eyes on acquiring some of China's remaining independent plants, which are clustered there.
- CNOOC, China's main offshore oil firm, is sticking to its schedule for the 240,000 barrels per day (bpd) Huizhou refinery in the south, even as severe weather and slow equipment delivery are set to delay the opening of a refinery in northwest China being built by rival PetroChina.
- After China suffered a serious fuel crunch late last year, Chinese oil firms are being closely watched for signs they can deliver planned refining facilities to a country expected to log a near 6 percent growth in fuel demand this year.
- CNOOC's Huizhou plant, which is set to supply the thriving Guangdong market, and the company's plans to acquire independent oil plants, put it firmly on the road to becoming a fully integrated oil firm to take on the country's oil duopoly of Sinopec Corp (SNP) and PetroChina (PTR).
- CNOOC is also quietly quadrupling capacity at a plant to produce bitumen in the booming eastern city of Ningbo to 160,000 bpd, and could eventually turn the facility into a refinery for transportation fuels, officials familiar with the project said.
- CNOOC may also seek to take over the smaller independent refiners that have managed to stave off government moves to close them down but are now struggling to turn a profit because domestic oil prices are capped while crude values have soared above $100 a barrel.
No positions, but very interested in CNOOC
