19 August 2019
Cnooc Ltd. Chief Executive Officer Li Fanrong Attends Annual Earnings News Conference

The Big Picture: CNOOC REFORM

CNOOC Ltd. (00883.HK), China’s largest offshore oil and gas producer, has outlined its aim to be more market-oriented in its business and operational structure as the government seeks to promote a mixed-ownership economy as part of the nation’s reforms.

“We are a red-chip company and about 35 percent of our shares are freely floated in the secondary market. We are a market-driven company and will continue to be so,” the energy giant’s chairman Wang Yilin said at a news conference Friday.

“We choose partners… that can be complementary to our technique, lower the risk and improve efficiency,” he added.

Regarding business development, he said the oil and gas production technique that is used in the North Sea off England, as well as in Africa, is worth learning and adopting in China’s production projects.

CNOOC plans capital expenditure (capex) of 105 billion yuan (US$16.9 billion) to 120 billion yuan this year, up from 92.4 billion yuan last year. The increase is in contrast to reduced spending by domestic rivals PetroChina Co. Ltd. (00857.HK) and China Petroleum & Chemical Corp. (Sinopec, 00386.HK).

“Our capex is mostly for boosting the production,” Wang said, adding that it involves new oil and gas fields and some facilities of Nexen, the Canadian energy firm that was acquired by CNOOC.

Fresh protests in Taiwan over China trade pact

Taiwan demonstrators on Sunday occupied the Ketagalan Boulevard opposite the Presidential Office Building, as well as the nearby streets, in Taipei in continuing protests over a cross-strait services trade pact. The demonstration began at around 1 pm and ended around 7:40 pm, Liberty Times reported Monday. Campaign organizers said as many as half a million people took part in the protests, while some media reports put the number at over 100,000. Student protest leader Lin Fei-fan urged President Ma Ying-jeou {馬英九} to renegotiate the trade pact with the mainland. He also said that there should be legislative approval first before any agreement.

China said to have seized US$14.5 bln assets linked to Zhou

Chinese authorities have seized assets worth at least 90 billion yuan (US$14.5 billion) from family members and associates of former domestic security tsar Zhou Yongkang, who is at the center of China’s biggest corruption scandal in more than six decades, Reuters reported Sunday, citing two sources. More than 300 of Zhou’s relatives, political allies, proteges and staff have been taken into custody or questioned in the past four months, the report said. Sources were quoted as saying that prosecutors and the party’s anti-corruption watchdog had frozen bank accounts with deposits totaling 37 billion yuan and seized domestic and overseas bonds and stocks with a combined value of 51 billion yuan after raiding homes in Beijing, Shanghai and five provinces. Investigators had also confiscated about 300 apartments and villas worth about 1.7 billion yuan, antiques and contemporary paintings with a market value of 1 billion yuan and more than 60 vehicles, the report said. 

– Contact HKEJ at [email protected]



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