China's
offshore-oriented
CNOOC (NYSE: CEO) continues to try to thread
its way into offshore venues in a variety of places. Let's
start with the U.S. Gulf of Mexico; the company is in talks
to acquire leaseholds there
from Norway's
StatoilHydro (NYSE: STO).
Thus far, the talks haven't led to a deal, but should that
occur, any subsequent activity by CNOOC in the Gulf would
represent the first instance of Chinese oil companies plying
their trade in U.S. waters. Indeed, the closest they've come
was CNOOC's $18.5 billion bid for Unocal four years ago. The
bid was withdrawn on the basis of political complaints in the
U.S., and Unocal is now owned by
Chevron (NYSE: CVX).
Statoil has assumed a rather laid-back attitude toward its
talks with CNOOC. According to the Norwegian company, it's
simply maximizing its portfolio by providing information on
leases it acquired in sales during the past two years and in
which it now has sole ownership.
It wasn't long ago that the Gulf of Mexico was
looking moribund. But as the operators have moved rigs to
deeper waters, the successes have increased. For instance, as
you may know, early last month a group
comprising
BP (NYSE: BP), Brazil's
Petrobras (NYSE: PBR), and ConocoPhillips
uncovered
a "giant" discoverythere in 4,132 feet of water. The
well, which has been named Tiber, was drilled to a total
depth of 35,055 feet, making it likely the deepest well on
record.
At the same time, CNOOC recently jousted with
ExxonMobil (NYSE: XOM) for the
opportunity to purchasefrom Dallas-based Kosmos Energy
nearly a quarter of the big Jubilee field offshore Ghana. The
field, which was discovered by
Anadarko (NYSE: APC), and others, is thought
to contain about 1.8 billion barrels of oil. It may be at the
eastern edge of a structure that runs about 700 miles to the
west.
In fact, earlier this month, a group comprising Anadarko,
Repsol ,
Tullow Oil , and Australia's
Woodside Ltd. discovered oil offshore Sierra
Leone, near what could be at the western extremity of that
structure.
It will be interesting to follow the trail of increasingly
active CNOOC. While it appears that Kosmos' Jubilee interest
will go to Exxon in exchange for $4 billion, I wouldn't sell
CNOOC short vis-a-vis its ability to spread itself into the
Gulf or elsewhere. This is an intriguing company. Keep an eye
on it.
CNOOC has been rated a four-star company by
Motley Fool CAPSplayers.
Why not check in with your assessment of
the
company?
This article was originally published as
The Chinese May Be Drilling at Your Doorstepon
Fool.com
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