CNOOC Limited received permission to list its shares on the Chinese stock exchange
Chinese oil corporation CNOOC Limited received official permission from the relevant state committee to conduct a listing. The producer will be able to present its type A shares on the stock market. Under the terms of permission from the Securities Commission of the PRC, CNOOC may issue up to 2.99 billion shares on the stock exchange. In addition, during the IPO process, the corporation needs to clearly adhere to the plan and prospectus that have been submitted and approved in advance. The preliminary valuation of the shares and the estimated profit from the IPO have not yet been disclosed.
CNOOC Limited is part of the National Offshore Oil Corporation. The history of the corporation began in 1982 when the Chinese government established a company for the development of oil and gas fields. Initially, foreign corporations were involved in technical support of production. CNOOC Limited appeared in 1999 in Hong Kong, its shares were traded on the local stock exchange and in New York. It is to this structure that the National Offshore Oil has transferred all the assets involved in offshore oil production.
The territory of China is developing reserves in the Yellow and South China Seas. Crude oil is sold through a number of subsidiaries, which operate in the domestic market of the PRC and other countries.
CNOOC owns a fleet that services the fields. It includes ships, barges, and pipe-laying vessels.
Last summer, the company’s management announced the start of production at the Liuhua 21-2 site. This news was an important step for the country since it was the first time the PRC started developing deep-water deposits on its own. The field was discovered in 2015 in the South China Sea and is fully owned by the corporation. The area in this part of the body of water is more than 437 meters deep, and wells are being drilled at a depth of 3 kilometers. According to the corporation’s plans, the field will have 8 wells, which will allow the field to reach its peak by 2023. It is expected that the site will bring more than 15 thousand barrels per day.
Following the strategy of energy security, the Chinese government is actively expanding the production of raw materials on its territory. In addition, the authorities intend to achieve carbon neutrality by 2060, so many local companies are now increasing production to provide the country with its raw materials and reduce the use of coal.
CNOOC Limited is developing other fields, and experts are also exploring new deposits. According to data, the new four wells offshore have oil and gas reserves of about 200 million tons.