China National Offshore Oil Corporation
Encyclopedia
China National Offshore Oil Corporation (CNOOC Group Chinese
: 中国海洋石油总公司 Pinyin
: Zhōngguó Háiyáng Shíyóu Zǒnggōngsī) is one of the three major national oil companies of China.
CNOOC Group is the third-largest National Oil Company (NOC) in the People's Republic of China
after CNPC (parent of PetroChina
), and China Petrochemical Corporation
(parent of Sinopec
).
Subsidiaries:
While CNPC Group/PetroChina
Limited originally focused on onshore upstream projects, and China Petrochemical Corporation
/Sinopec
Limited focused on downstream refining, CNOOC Group focus on the exploitation, exploration and development of crude oil
and natural gas offshore of China.
CNOOC Group is a state-owned oil company, fully owned by the Government of the People's Republic of China, and the State-Owned Assets Supervision and Administration Commission of the State Council
(SASAC) performs the rights and obligations of shareholder on behalf of the government.
promulgated the Regulation of the People's Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises on January 30, 1982, CNOOC was incorporated and authorized to assume the overall responsibilities for the exploitation of oil and gas resources offshore China in cooperation with foreign partners, which in effect ensured the monopoly status of CNOOC in offshore oil and natural gas industry. Headquartered in Beijing, CNOOC registered with a capital of RMB 50 billion and now has more than 51,000 employees.
In 2004, CNOOC realized a sustained growth in oil and gas output. It generated revenue of RMB 70.92 billion and net profit of RMB 24.22 billion, and RMB 12.09 billion in taxes in 2004, up 32%, 62% and 80% respectively from the previous year. By the end of 2004, total assets and nets assets had reached RMB 153.26 billion and 83.06 billion, a 28% and 21% increase from the beginning of the year. It is the fifth and 12th in gross profits and totals assets among state-owned enterprises in China. Outstanding performances of the company has been fully recognized in the capital market with Standard & Poor's and Moody's Investors Service assigning CNOOC a long term BBB+ and A2, equivalent to China' sovereign rating and the highest ratings for Chinese companies.
Exploration and production of oil and gas saw a steady growth in 2004. The output reached 36.48 million tons of oil equivalent, increasing by 3.12 million ton or 9% as compared with 2003. Its domestic production reached 24.72 million ton, an increase of 11% from the previous year, higher than the average national growth rate of 3%. Annual output in Bohai Bay exceeded 10 million ton of oil equivalent for the first time, making it the second major offshore producing area with an output of over 10 million ton in China after Eastern South Sea and an important energy production base in northern China.
In addition to the steady growth in upstream business, CNOOC found success in its mid- and downstream business. It set up CNOOC Gas & Power focusing on the downstream development of gas distribution and gas power generation. CNOOC has become China's dominant producer of liquefied natural gas
in the past few years. In an increasingly competitive domestic LNG market, CNOOC concluded all mid- and down-stream contracts in the Guangdong and Fujian LNG projects, to import 3.5 million ton per annum(mpta) and 2.6 million mpta LNG respectively from Australia's North Western Shelf project (NWS) and Indonesia's Tangguh field operated by BP. LNG projects in Zhejiang and Shanghai started construction, and CNOOC also signed head of agreements (HOAs) on LNG cooperation with Liaoning, Tianjin, Hebei, Hainan and Jiangsu, although these plans are not finalized. So far CNOOC has completed its preliminary strategic deployment in natural gas industry in the costal areas south to the Yangtze River. In these projects, CNOOC is responsible for both the construction of LNG receiving terminals and trunklines for gas transmission as well as the construction of gas-fired power plants.
In April 2004, the Ministry of Commerce granted CNOOC-SINOPEC United International Trading a license to import crude oil. Previously, CNPC, Sinopec, Sinochem and Zhuhai Zhenrong had been the only companies which imported crude oil to China. In July, the NDRC approved the Nanhai Refinery Project with an annual capacity of 12 million ton, a joint venture between CNOOC and Royal Dutch Shell
and the largest joint venture ever in China. CNOOC had established integrated industrial portfolio as it expanded into the refining business, and CNOOC was preparing itself for the retail and wholesale of refined oil, the business which used to be monopolized by CNPC and Sinopec. Shell went ahead with the JV ethylene plant ($4.3 bn), but in 2007 announced it would not take part in the refinery ($2.4 bn).
The three listed companies under CNOOC had remarkable performances in 2004. The share price of CNOOC Limited rose by 37%, and its market capitalization reached RMB 181.68 billion. The share price of CNOOC Engineering listed in the Shanghai Stock Exchange rose by 66.11%. The market capitalization of China Oilfield Services reached RMB 10.1 billion. At the end of 2004, market capitalization of the three listed companies had approached RMB 200 billion, 3.3 times as much as their net assets. The value of state-owned assets was effectively increased.
CNOOC makes continuing efforts in various areas including oil and gas exploration and development, exploitation of overseas resources, development of midstream and downstream business and establishment of modern business system in 2005, to build an integrated energy company with international competitiveness and modern management system by 2008 with fast and quality growth and strong profitability. It aims to develop into a world-class integrated international energy company.
Under ex-CEO Wei Liucheng, who was promoted to the governor of Hainan
province in October 2003 as a reward for his outstanding work, and the incumbent chairman and chief executive Fu Chengyu (傅成玉), CNOOC took aggressive measures in merges and acquisitions relevant to core business in recent years, among which it acquired five blocks in Indonesia from Spanish oil company Repsol in 2002 and became the largest offshore operator. In 2003, it bought 5.3% of interests in NWS ensuring the supply of Guangdong LNG project, in the same year it exercised the preemption right to acquire 12.5% of interests in Tangguh to ensure the supply of Fujian LNG project. CNOOC also sought to acquire a 12.5% interests in Australia's Gorgon field to ensure the supply of Shanghai and Zhejiang LNG projects, however this fell through when the parties could not agree on a price.
According to SASAC in December 2008, CNOOC made a light oil and gas discovery in the 100 million tonne class at its Jinzhou 25-1 field in Bohai Bay
. In May 2009, the company announced a plan to build a $4.38 billion coal-based natural gas project in Shanxi
.
, topping an earlier bid by ChevronTexaco. Unocal's extensive oil interests in Central Asia
were considered to be an excellent strategic fit for CNOOC. On July 20, 2005, Unocal announced that it had accepted an increased buyout offer from ChevronTexaco for $17.1 billion. This decision was submitted to a vote by Unocal stockholders on August 10, 2005. On August 2, CNOOC announced that it had withdrawn its bid, citing political tension inside the United States.
Despite a hands-off approach from the Bush Administration
, a broad group of Democrats
and Republicans
in Congress
organized opposition to the CNOOC bid. They argued that with $13 billion of CNOOC's bid for Unocal coming from the Chinese government, the offer did not represent a free market
transaction and had questionable motives. Furthermore, a lack of reciprocity was pointed out as American corporations were prohibited from purchasing analogous assets in China. It was also argued that the foreign and particularly communist ownership of oil assets could represent a regional and economic security risk. Unocal also had sensitive deep-sea exploration and drilling technology with dual-use potential. The Economist
and other sources attempted to debunk the security threat, while CNOOC was willing to submit to a US security review. While there was no law to block the purchase, Congressional delays and calls for extensive inquiry into the matter deterred the CNOOC bid significantly.
CNOOC was advised by Goldman Sachs
in the deal and CEO Fu Chengyu was originally very confident that it would pass because they "were following a system that was set up by Western leading companies. CNOOC at the time had a reputation for acting independently of government control, and in fact had not notified Chinese government officials prior to making the bid for UNOCAL. Ironically, the political backlash aroused in the United States caused the Chinese government to increase the oversight of the commercial activities of Chinese companies to avoid future risks to the Sino-American relationship.
CNOOC also faces tough new challenges in the domestic market. Its rivals CNPC and Sinopec have recently been granted approval to conduct offshore explorations once monopolized by CNOOC. Furthermore, in accordance with the commitment made by the Chinese government to join the World Trade Organization
, the retail and wholesale market of oil will be further opened to non-Chinese companies by the end of 2006. Large foreign energy firms, such as Exxon Mobil and BP
, will more easily make inroads. At the same time, CNOOC's smaller domestic competitors have been attempting to end the current monopoly of the three major NOCs in the industry.
. Ng is the wife of Steven Law (Tun Myint Naing), while Law is the son of Lo Hsing Han
also referred to as the "Godfather of Heroin". In 2008 the US Treasury publicly implicated that CNOOC have been cooperating with a company run by a family notorious for heroin-trafficking.
In 2008 CNOOC have also been accused of abuses of human rights in Burma. The campaign group Arakan Oil Watch stated in a report that "left behind such a trail of abuses and environmental contamination on Ramree Island that outraged locals attacked their facilities." The actions of CNOOC in Burma has been compared to that of communist party
officials within rural China, where entrepreneurs who want to pursue a development against the locals just steamroll the opposition. Mainly the Shwe gas project has been linked with land confiscation and human right abuses.
. The oil field is 51% owned by CNOOC, and 49% owned by the United States
company ConocoPhillips
. The leak however was not publicly reported until 31 days later on July 5, 2011.
refinery at the Daya Bay
Economic and Technical Development zone in Guangdong province. The refinery is also only 40 kilometers from the Daya Bay Nuclear Power Plant.
Chinese language
The Chinese language is a language or language family consisting of varieties which are mutually intelligible to varying degrees. Originally the indigenous languages spoken by the Han Chinese in China, it forms one of the branches of Sino-Tibetan family of languages...
: 中国海洋石油总公司 Pinyin
Pinyin
Pinyin is the official system to transcribe Chinese characters into the Roman alphabet in China, Malaysia, Singapore and Taiwan. It is also often used to teach Mandarin Chinese and spell Chinese names in foreign publications and used as an input method to enter Chinese characters into...
: Zhōngguó Háiyáng Shíyóu Zǒnggōngsī) is one of the three major national oil companies of China.
CNOOC Group is the third-largest National Oil Company (NOC) in the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
after CNPC (parent of PetroChina
PetroChina
PetroChina Company Limited is a Chinese oil company and is the listed arm of state-owned China National Petroleum Corporation , headquartered in Dongcheng District, Beijing. It is China's biggest oil producer, and was the world's most valuable company by market value as of September 28th 2010...
), and China Petrochemical Corporation
China Petrochemical Corporation
China Petrochemical Corporation or Sinopec Group is Asia's largest oil refining and petrochemical enterprise, administered by SASAC for the State Council of the People's Republic of China...
(parent of Sinopec
Sinopec
China Petroleum & Chemical Corporation Limited , or Sinopec Limited , is a majority owned subsidiary of state owned company Sinopec Group. Sinopec Limited is listed in Hong Kong and also trades in Shanghai and New York ....
).
Subsidiaries:
- CNOOC LimitedCNOOC LimitedCNOOC Limited is the major Hong Kong listed subsidiary of China National Offshore Oil Corporation. CNOOC Ltd is listed in Hong Kong and also trades in New York ....
(中国海洋石油有限公司) is listed in Hong KongHong KongHong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, . - China Oilfield ServicesChina Oilfield ServicesChina Oilfield Services is an oilfield service. It is a majority owned subsidiary of Chinese state owned company CNOOC Group. It also has a listed sister company in Hong Kong, CNOOC Limited....
(COSL) is a fellow subsidiary of CNOOC Limited listed in Hong Kong.
While CNPC Group/PetroChina
PetroChina
PetroChina Company Limited is a Chinese oil company and is the listed arm of state-owned China National Petroleum Corporation , headquartered in Dongcheng District, Beijing. It is China's biggest oil producer, and was the world's most valuable company by market value as of September 28th 2010...
Limited originally focused on onshore upstream projects, and China Petrochemical Corporation
China Petrochemical Corporation
China Petrochemical Corporation or Sinopec Group is Asia's largest oil refining and petrochemical enterprise, administered by SASAC for the State Council of the People's Republic of China...
/Sinopec
Sinopec
China Petroleum & Chemical Corporation Limited , or Sinopec Limited , is a majority owned subsidiary of state owned company Sinopec Group. Sinopec Limited is listed in Hong Kong and also trades in Shanghai and New York ....
Limited focused on downstream refining, CNOOC Group focus on the exploitation, exploration and development of crude oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and natural gas offshore of China.
CNOOC Group is a state-owned oil company, fully owned by the Government of the People's Republic of China, and the State-Owned Assets Supervision and Administration Commission of the State Council
State-owned Assets Supervision and Administration Commission of the State Council
The State-owned Assets Supervision and Administration Commission of the State Council is a special commission of the People's Republic of China, directly under the State Council...
(SASAC) performs the rights and obligations of shareholder on behalf of the government.
History
When the State CouncilState Council of the People's Republic of China
The State Council of the People's Republic of China , which is largely synonymous with the Central People's Government after 1954, is the chief administrative authority of the People's Republic of China. It is chaired by the Premier and includes the heads of each governmental department and agency...
promulgated the Regulation of the People's Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises on January 30, 1982, CNOOC was incorporated and authorized to assume the overall responsibilities for the exploitation of oil and gas resources offshore China in cooperation with foreign partners, which in effect ensured the monopoly status of CNOOC in offshore oil and natural gas industry. Headquartered in Beijing, CNOOC registered with a capital of RMB 50 billion and now has more than 51,000 employees.
Operations
CNOOC keeps on optimizing its industrial chain by taking up-stream business as core business and developing from an independent company into an integrated energy company. CNOOC has established six business sectors ranging from exploration and development of oil and gas, technical services, logistic services, chemicals and fertilizer production, natural gas and power generation to financial services, insurance in more than two decades, all undergoing smooth and synergetic growth.In 2004, CNOOC realized a sustained growth in oil and gas output. It generated revenue of RMB 70.92 billion and net profit of RMB 24.22 billion, and RMB 12.09 billion in taxes in 2004, up 32%, 62% and 80% respectively from the previous year. By the end of 2004, total assets and nets assets had reached RMB 153.26 billion and 83.06 billion, a 28% and 21% increase from the beginning of the year. It is the fifth and 12th in gross profits and totals assets among state-owned enterprises in China. Outstanding performances of the company has been fully recognized in the capital market with Standard & Poor's and Moody's Investors Service assigning CNOOC a long term BBB+ and A2, equivalent to China' sovereign rating and the highest ratings for Chinese companies.
Exploration and production of oil and gas saw a steady growth in 2004. The output reached 36.48 million tons of oil equivalent, increasing by 3.12 million ton or 9% as compared with 2003. Its domestic production reached 24.72 million ton, an increase of 11% from the previous year, higher than the average national growth rate of 3%. Annual output in Bohai Bay exceeded 10 million ton of oil equivalent for the first time, making it the second major offshore producing area with an output of over 10 million ton in China after Eastern South Sea and an important energy production base in northern China.
In addition to the steady growth in upstream business, CNOOC found success in its mid- and downstream business. It set up CNOOC Gas & Power focusing on the downstream development of gas distribution and gas power generation. CNOOC has become China's dominant producer of liquefied natural gas
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....
in the past few years. In an increasingly competitive domestic LNG market, CNOOC concluded all mid- and down-stream contracts in the Guangdong and Fujian LNG projects, to import 3.5 million ton per annum(mpta) and 2.6 million mpta LNG respectively from Australia's North Western Shelf project (NWS) and Indonesia's Tangguh field operated by BP. LNG projects in Zhejiang and Shanghai started construction, and CNOOC also signed head of agreements (HOAs) on LNG cooperation with Liaoning, Tianjin, Hebei, Hainan and Jiangsu, although these plans are not finalized. So far CNOOC has completed its preliminary strategic deployment in natural gas industry in the costal areas south to the Yangtze River. In these projects, CNOOC is responsible for both the construction of LNG receiving terminals and trunklines for gas transmission as well as the construction of gas-fired power plants.
In April 2004, the Ministry of Commerce granted CNOOC-SINOPEC United International Trading a license to import crude oil. Previously, CNPC, Sinopec, Sinochem and Zhuhai Zhenrong had been the only companies which imported crude oil to China. In July, the NDRC approved the Nanhai Refinery Project with an annual capacity of 12 million ton, a joint venture between CNOOC and Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
and the largest joint venture ever in China. CNOOC had established integrated industrial portfolio as it expanded into the refining business, and CNOOC was preparing itself for the retail and wholesale of refined oil, the business which used to be monopolized by CNPC and Sinopec. Shell went ahead with the JV ethylene plant ($4.3 bn), but in 2007 announced it would not take part in the refinery ($2.4 bn).
The three listed companies under CNOOC had remarkable performances in 2004. The share price of CNOOC Limited rose by 37%, and its market capitalization reached RMB 181.68 billion. The share price of CNOOC Engineering listed in the Shanghai Stock Exchange rose by 66.11%. The market capitalization of China Oilfield Services reached RMB 10.1 billion. At the end of 2004, market capitalization of the three listed companies had approached RMB 200 billion, 3.3 times as much as their net assets. The value of state-owned assets was effectively increased.
CNOOC makes continuing efforts in various areas including oil and gas exploration and development, exploitation of overseas resources, development of midstream and downstream business and establishment of modern business system in 2005, to build an integrated energy company with international competitiveness and modern management system by 2008 with fast and quality growth and strong profitability. It aims to develop into a world-class integrated international energy company.
Under ex-CEO Wei Liucheng, who was promoted to the governor of Hainan
Hainan
Hainan is the smallest province of the People's Republic of China . Although the province comprises some two hundred islands scattered among three archipelagos off the southern coast, of its land mass is Hainan Island , from which the province takes its name...
province in October 2003 as a reward for his outstanding work, and the incumbent chairman and chief executive Fu Chengyu (傅成玉), CNOOC took aggressive measures in merges and acquisitions relevant to core business in recent years, among which it acquired five blocks in Indonesia from Spanish oil company Repsol in 2002 and became the largest offshore operator. In 2003, it bought 5.3% of interests in NWS ensuring the supply of Guangdong LNG project, in the same year it exercised the preemption right to acquire 12.5% of interests in Tangguh to ensure the supply of Fujian LNG project. CNOOC also sought to acquire a 12.5% interests in Australia's Gorgon field to ensure the supply of Shanghai and Zhejiang LNG projects, however this fell through when the parties could not agree on a price.
According to SASAC in December 2008, CNOOC made a light oil and gas discovery in the 100 million tonne class at its Jinzhou 25-1 field in Bohai Bay
Bohai Bay
Bohai Bay is one of the three bays forming the Bohai Gulf, the innermost gulf of the Yellow Sea, in northeast China. It borders Hebei province and Tianjin Municipality...
. In May 2009, the company announced a plan to build a $4.38 billion coal-based natural gas project in Shanxi
Shanxi
' is a province in Northern China. Its one-character abbreviation is "晋" , after the state of Jin that existed here during the Spring and Autumn Period....
.
Unocal buyout attempt
In June 2005, CNOOC made an all-cash $18.5 billion offer to buy American oil company Unocal CorporationUnocal Corporation
Union Oil Company of California, dba Unocal is a defunct company that was a major petroleum explorer and marketer in the late 19th century, through the 20th century, and into the early 21st century. It was headquartered in El Segundo, California, United States.On August 10, 2005, Unocal merged...
, topping an earlier bid by ChevronTexaco. Unocal's extensive oil interests in Central Asia
Central Asia
Central Asia is a core region of the Asian continent from the Caspian Sea in the west, China in the east, Afghanistan in the south, and Russia in the north...
were considered to be an excellent strategic fit for CNOOC. On July 20, 2005, Unocal announced that it had accepted an increased buyout offer from ChevronTexaco for $17.1 billion. This decision was submitted to a vote by Unocal stockholders on August 10, 2005. On August 2, CNOOC announced that it had withdrawn its bid, citing political tension inside the United States.
Despite a hands-off approach from the Bush Administration
George W. Bush administration
The presidency of George W. Bush began on January 20, 2001, when he was inaugurated as the 43rd President of the United States of America. The oldest son of former president George H. W. Bush, George W...
, a broad group of Democrats
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
and Republicans
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
in Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
organized opposition to the CNOOC bid. They argued that with $13 billion of CNOOC's bid for Unocal coming from the Chinese government, the offer did not represent a free market
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
transaction and had questionable motives. Furthermore, a lack of reciprocity was pointed out as American corporations were prohibited from purchasing analogous assets in China. It was also argued that the foreign and particularly communist ownership of oil assets could represent a regional and economic security risk. Unocal also had sensitive deep-sea exploration and drilling technology with dual-use potential. The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
and other sources attempted to debunk the security threat, while CNOOC was willing to submit to a US security review. While there was no law to block the purchase, Congressional delays and calls for extensive inquiry into the matter deterred the CNOOC bid significantly.
CNOOC was advised by Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
in the deal and CEO Fu Chengyu was originally very confident that it would pass because they "were following a system that was set up by Western leading companies. CNOOC at the time had a reputation for acting independently of government control, and in fact had not notified Chinese government officials prior to making the bid for UNOCAL. Ironically, the political backlash aroused in the United States caused the Chinese government to increase the oversight of the commercial activities of Chinese companies to avoid future risks to the Sino-American relationship.
CNOOC also faces tough new challenges in the domestic market. Its rivals CNPC and Sinopec have recently been granted approval to conduct offshore explorations once monopolized by CNOOC. Furthermore, in accordance with the commitment made by the Chinese government to join the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
, the retail and wholesale market of oil will be further opened to non-Chinese companies by the end of 2006. Large foreign energy firms, such as Exxon Mobil and BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
, will more easily make inroads. At the same time, CNOOC's smaller domestic competitors have been attempting to end the current monopoly of the three major NOCs in the industry.
LNG terminals
CNOOC is the first company to bring LNG (Liquefied Natural Gas) to China, with the completion of its Dapeng LNG Terminal in Guangdong. The terminal received its first LNG cargo in July 2006, from the NW Shelf LNG project in Australia. The following are planned/proposed LNG terminals by CNOOC:| Name | Location | Start-up Date | Capacity (mmtpa) | 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 |
Drug trafficking ties
In October 2004 a few firms were formed to negotiate sharing contract in Burma. The companies were "Myanmar Oil and Gas Enterprise", "Golden Aaron" and "China Huanqiu Contracting and Engineering corp". CNOOC's joint venture partner "Golden Aaron" is run by Cecilia Ng from SingaporeSingapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
. Ng is the wife of Steven Law (Tun Myint Naing), while Law is the son of Lo Hsing Han
Lo Hsing Han
Lo Hsing Han or Law Sit Han is a former Burmese drug trafficker and present-day major Burmese business tycoon, with financial ties to Singapore. He is an ethnic Kokang.-Rise and fall:...
also referred to as the "Godfather of Heroin". In 2008 the US Treasury publicly implicated that CNOOC have been cooperating with a company run by a family notorious for heroin-trafficking.
Human right abuses in Burma
In 2007 CNOOC was involved in a clash with Burma workers who threw stones at the company offices. Ten citizens from Kyaukphyu were detained and questioned by the government authorities after disputing with CNOOC over low wages and long working hours. There were complaints of underpayment as well as the mistreatment of inhabitants.In 2008 CNOOC have also been accused of abuses of human rights in Burma. The campaign group Arakan Oil Watch stated in a report that "left behind such a trail of abuses and environmental contamination on Ramree Island that outraged locals attacked their facilities." The actions of CNOOC in Burma has been compared to that of communist party
Communist Party of China
The Communist Party of China , also known as the Chinese Communist Party , is the founding and ruling political party of the People's Republic of China...
officials within rural China, where entrepreneurs who want to pursue a development against the locals just steamroll the opposition. Mainly the Shwe gas project has been linked with land confiscation and human right abuses.
2011 Bohai bay oil spill
On June 4, 2011 the Penglai 19-3 oilfield operated by ConocoPhillips caused an oil spill from a sea floor leak that lasted until June 7. This was followed by a second leak that occurred on June 17, but was contained within 48 hours. In total the leaks polluted more than 840 square kilometers of first grade clean water in Bohai BayBohai Bay
Bohai Bay is one of the three bays forming the Bohai Gulf, the innermost gulf of the Yellow Sea, in northeast China. It borders Hebei province and Tianjin Municipality...
. The oil field is 51% owned by CNOOC, and 49% owned by the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
company ConocoPhillips
ConocoPhillips
ConocoPhillips Company is an American multinational energy corporation with its headquarters located in the Energy Corridor district of Houston, Texas in the United States...
. The leak however was not publicly reported until 31 days later on July 5, 2011.
2011 Huizhou refinery explosion
On July 11, 2011 an explosion blast occurred at the HuizhouHuizhou
Huizhou , historically known as Waichow, is a city located in central Guangdong province of the People's Republic of China. Part of the Pearl River Delta, Huizhou borders the provincial capital of Guangzhou to the west, Shaoguan to the north, Heyuan to the northeast, Shanwei to the east, Shenzhen...
refinery at the Daya Bay
Daya Bay
Daya Bay , formally known as Bias Bay, is a body of water located east of Hong Kong in Guangdong Province in southern People's Republic of China. Daya Bay is home to four nuclear reactors, two each belonging to the Daya Bay Nuclear Power Plant and the Ling Ao Nuclear Power Plant, as well as the...
Economic and Technical Development zone in Guangdong province. The refinery is also only 40 kilometers from the Daya Bay Nuclear Power Plant.