One of the better summaries of the Chinese oil industry. Not a comprehensive history, but a nice breakdown of CNOOC Ltd. (CEO), PetroChina (PTR) and Sinopec (SNP) by Randy Kirk.
CNOOC Limited: Future Oil Supermajor
Bohai Bay in Northern China is CNOOC's largest production area currently, and, over the near term, is the Company's highest priority development area. The area has significant potential, as in March, 2007, PetroChina discovered 7.3 Billion Barrels of Oil equivalent in Bohai Bay, the largest discovery in China over the last 30 years. Note that this discovery was the result of significant exploration activity by PetroChina, as development costs for the exploratory wells totaled $780M for PetroChina.
(Note also PetroChina's stock moved up 12% with the announcement of the discovery in 3/07). CNOOC has stated that it has several prospects for Bohai Bay going forward, and the majority of CNOOC’s 2007 and 2008 exploration and production budgets have been earmarked for Bohai Bay.
In other words, the Chinese government will split up the goodies to keep all three of its oil kings to remain competitive on a global (market cap) scale. Oh, how I wish I'd bought CNOOC back at 92 two months ago. In the face of a big down day in the market today, CEO closed up 2.3% to 170. PTR was up 3% to 193.