Bulletin: CNOOC Ltd.'s Higher Capex For 2019 Is In Line With President Xi's Call, Our Forecast - S&P Global Ratings’ Credit Research

Bulletin: CNOOC Ltd.'s Higher Capex For 2019 Is In Line With President Xi's Call, Our Forecast

Bulletin: CNOOC Ltd.'s Higher Capex For 2019 Is In Line With President Xi's Call, Our Forecast - S&P Global Ratings’ Credit Research
Bulletin: CNOOC Ltd.'s Higher Capex For 2019 Is In Line With President Xi's Call, Our Forecast
Published Jan 23, 2019
3 pages (1122 words) — Published Jan 23, 2019
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Abstract:

HONG KONG (S&P Global Ratings) Jan. 24, 2019--S&P Global Ratings said today that CNOOC Ltd.'s increased capital expenditure (capex) guidance for 2019 is in line with our expectation. The company expects capex of Chinese renminbi (RMB) 70 billion-RMB80 billion in 2019, up from its estimate of RMB63 billion capex for 2018. The 2019 estimate is the highest since 2014, when oil prices were about US$100 per barrel. We have factored in capex of RMB80 billion for 2019. We had forecast capex of RMB75 billion in 2018. The higher spending is in line with Chinese President Xi Jinping's call in late 2018 for more investments by the three national oil companies to increase domestic supply of oil and gas. CNOOC Ltd.'s

  
Brief Excerpt:

...HONG KONG (S&P Global Ratings) Jan. 24, 2019--S&P Global Ratings said today that CNOOC Ltd.'s increased capital expenditure (capex) guidance for 2019 is in line with our expectation. The company expects capex of Chinese renminbi (RMB) 70 billion-RMB80 billion in 2019, up from its estimate of RMB63 billion capex for 2018. The 2019 estimate is the highest since 2014, when oil prices were about US$100 per barrel. We have factored in capex of RMB80 billion for 2019. We had forecast capex of RMB75 billion in 2018. The higher spending is in line with Chinese President Xi Jinping's call in late 2018 for more investments by the three national oil companies to increase domestic supply of oil and gas. CNOOC Ltd.'s capex in China will account for 62% of its total capex in 2019, up from 51% in 2018. The company's rolling three-year production target is to increase oil and gas production by 25-30 million barrels of oil equivalent (mmboe) in 2020 and 2021, respectively. CNOOC Ltd.'s estimate of 2018...

  
Report Type:

Bulletin

Ticker
883@HK
Issuer
CNOOC Ltd.
GICS
Oil & Gas Exploration & Production (10102020)
Sector
Global Issuers
Country
Hong Kong
Region
Latin America
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Bulletin: CNOOC Ltd.'s Higher Capex For 2019 Is In Line With President Xi's Call, Our Forecast" Jan 23, 2019. Alacra Store. May 21, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-CNOOC-Ltd-s-Higher-Capex-For-2019-Is-In-Line-With-President-Xi-s-Call-Our-Forecast-2156719>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: CNOOC Ltd.'s Higher Capex For 2019 Is In Line With President Xi's Call, Our Forecast Jan 23, 2019. New York, NY: Alacra Store. Retrieved May 21, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-CNOOC-Ltd-s-Higher-Capex-For-2019-Is-In-Line-With-President-Xi-s-Call-Our-Forecast-2156719>
  
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