Zhang Guohua Apr.30, 2004,in Marrakesh China National Offshore China National Offshore Oil Corporation Oil Corporation NOT AN OFFICIAL UNCTAD RECORD
Zhang Guohua
Apr.30, 2004,in Marrakesh
China National Offshore China National Offshore Oil CorporationOil Corporation
NOT AN OFFICIAL UNCTAD RECORD
2
CNOOC Overview
Established in 1982 as the national offshore petroleum company
Largest offshore oil and gas producer in China
Largest offshore oil and gas producer in China
Fast growing into integrated energy company
Fast growing into integrated energy company
One of the 3 largest oil companies of China (CNPC, SINOPC, CNOOC)
One of the 3 largest oil companies of China (CNPC, SINOPC, CNOOC)
3
China National Offshore Oil China National Offshore Oil CorporationCorporation (( CNOOCCNOOC ))
ServicesServices
CN
OO
C E
ng
i-C
NO
OC
En
gi-
neerin
g L
tdn
eering
Ltd
CNOOC Ltd (CNOOC Ltd (E&P)E&P)
Tijin
Bran
chT
ijin B
ranch
Zh
anjian
g B
ranch
Zh
anjian
g B
ranch
Sh
ang
hai B
ranch
Sh
ang
hai B
ranch
Overseas SubsidiariesOverseas Subsidiaries
Mid & Mid & DownstreamDownstream
Research
Cen
terR
esearch C
enter
Sh
enzh
en B
ranc
hS
hen
zhen
Bran
ch
LogisticsLogistics FinanceFinance
LNG
,Petro-
chemicals,R
efining
gas and power generation,
bitumen and fertilizer
finance,trust, investment
and insurance
Lo
gis
tics a
nd
serv
ices
Ch
ina O
ilfield
Ch
ina O
ilfield
Services L
tdS
ervices Ltd
CNOOC Overview
4
Petro-chemical (PE & PP)
Production: 230,000 t
in 2006
Fertilizer (Urea & Ammonia)
Production: 1.3 MMt
in 2003
LNG Terminal & Pipeline
Production: :5.5MMt/a
in 2006
E & P
Reserve: 2.1Billion BOE
Production: :357M BOE
in 2003
Gas power generation
Production: 430,000 kw
in 2007
Upstream Downstream
CNOOC Overview
Independent E&P Independent E&P Integrated EnergyIntegrated Energy
5
Listed on the New York and Hong Listed on the New York and Hong Kong Stock Exchange market in Kong Stock Exchange market in
20012001
One of the world’s largest One of the world’s largest exploration and production exploration and production
companies with an offshore China companies with an offshore China focusfocus
One of the world’s largest One of the world’s largest exploration and production exploration and production
companies with an offshore China companies with an offshore China focusfocus
Highest credit ratings from both Highest credit ratings from both agencies (A2/BBB) among Chinese agencies (A2/BBB) among Chinese
corporatescorporates
Highest credit ratings from both Highest credit ratings from both agencies (A2/BBB) among Chinese agencies (A2/BBB) among Chinese
corporatescorporates
Only Chinese company permitted to Only Chinese company permitted to enter into production sharing enter into production sharing
contracts with foreign companies contracts with foreign companies offshore Chinaoffshore China
Only Chinese company permitted to Only Chinese company permitted to enter into production sharing enter into production sharing
contracts with foreign companies contracts with foreign companies offshore Chinaoffshore China
CNOOC Ltd. Overview
LimitedLimited
LimitedLimited
6
China
Tianjin Korea
Guangzhou
Hong Kong
Philippines
BeijingOffshore China0 100 200 300 km
Shanghai
Bohai Bay
East China
Sea
Western SouthChina Sea
Eastern South China Sea
MALACCA STRAIT
Operation and Assets LocationAs of December 31, 2003
Offshore China Offshore China
Reserve(MMBOE)Reserve(MMBOE) 1,991.7 1,991.7
Oilfields in production 25 Oilfields in production 25 Gasfields in production 4Gasfields in production 4
Oil & Gas fields in construction 8Oil & Gas fields in construction 8
OverseasOverseas
Reserve(MMBOE)Reserve(MMBOE) in Indonesia 136.7 in Indonesia 136.7
Reserve(MMBOE)Reserve(MMBOE) in Australia in Australia
Total Reserve Booked 2,128Total Reserve Booked 2,128
Reserves (MMBOE) and Oil/Gas FieldsAs of December 31, 2003
CNOOC Ltd. Overview
7
ProductionOffshore China and OverseasCore Operation Area
●
●
●
●
2003 1-4Q
137,353 (boepd)
Bohai Bay
2003 1-4Q
4,908(boepd)
East China Sea
2003 1-4Q
84,010(boepd)
Western South China Sea
2003 1-4Q
72,981(boepd)
Eastern South China Sea
2003 1-4Q
57,477(boepd)
Overseas
●
●
356,729 BOE per day as of December 31, 2003
CNOOC Ltd. Overview
8
Strong Reserves and Production Growth
0500
1,0001,5002,000
1995 1996 1997 1998 1999 2000 2001 2002 2003
(MMBOE)
Significant Reserve Growth in 2002
736
1,4551,742 1,795 1,757
CAGR (1995-2003) = 17.1%
Crude Oil Natural Gas
070
140210280350
1995 1996 1997 1998 1999 2000 2001 2002 2003
CAGR (1995- 2003) = 18.2%
175.4 201.2 206.9 208.8239.3 261.4
107.6
Continuous Production Growth(MBOE/D)
1,7872,016
356.7
668
346.6
2,128
CNOOC Ltd. Overview
9
Cost Per BOE offshore China
2.99 2.99 3.01 2.85 2.82
1.14 1.15 1.42
3.843.62
3.32 3.523.70
0.64
0.931.45
0.83 0.720.820.80
0.160.140.120.140.29$8.81$8.48$8.39
$8.84$8.88
$0.00$1.00$2.00$3.00$4.00$5.00$6.00$7.00$8.00$9.00
$10.00$11.00
1999 2000 2001 2002 2003 H1
Operati ng Expenses Producti on TaxesDD&A SG&ADi smantl ement
USD/BOE
Maintained low production costs offshore China
CNOOC Ltd. Overview
10
Countries and regionsCountries and regions Oil companiesOil companies Contracts and Contracts and agreementagreement
TotalTotal 1818 7171 161161
Under ExecutionUnder Execution 1010 2929 3434
Partners in PSC in Offshore China
CNOOC Ltd. Overview
11 With 3 overseas acquisitions CNOOC Ltd achieved a new milestone on the way of internationalization
AustraliaAustralia
ChinaChina
IndonesiaIndonesia
North West Shelf Venture and North West Shelf Venture and GorgonGorgon
Tangguh LNG ProjectTangguh LNG Project
Repsol-YPF’s Indonesian AssetsRepsol-YPF’s Indonesian Assets
Oversea production in 1998Oversea production in 1998
Oversea production in 2003Oversea production in 2003
CNOOC Ltd. Overview
24.8%
12(1) Includes time deposits and short-term investments
40.644.3
9.05.3
15.214.5
36.6
39.7
5.45.2
19.1
22.8
As at Dec. 31, 2002 As at Jun. 30, 2003
Total Debt/Total Capital 11.6% 16.9%
2002 H1 2003 H1
EBITDE/Interest Expenses 54.1x 103.8x
Total Assets: 61.1 67.7
RM
B b
illi
on
s
As at Dec. 31, 2002 As at Jun. 30, 2003
Liabilities
Cash(1)
Cash(1)
+19.8%
Other Current Assets
Other Current Assets
Non-current Assets
Non-current Assets
Liabilities
Equity Equity
+9.2%
+69.2%
+8.4%
DebtDebt
Increase in cash from debt offering and operation is partially offset by payment for acquisition of equity interest in Tangguh LNG Project
Debt portion increased by 69.2% due to recent debt offering
Ba l
ance
Sh
eet
Mo
vem
ent
CNOOC Ltd. Overview
13
Total Revenue: USD $4.9 Billion Oil & Gas Sales:USD $3.4 Billion
18.2% yoy Growth
Net Profit: USD $1.4 Billion 24.9% yoy Growth
Highlight of CNOOC Ltd in 2003Highlight of CNOOC Ltd in 2003
Reserve Increase: 243 MMBOEOil/Gas Production: 130
MMBOE
ROE: 26.4%
CNOOC Ltd. Overview
Maximize exceptional
value to shareholders
14
5060708090
100110120130140150160170180190200210220230240250
02-27-01 05-30-01 08-30-01 11-30-01 03-04-02 06-04-02 09-04-02 12-05-02 03-07-03 06-09-03 09-05-03
CNOOC PetroChina Sinopec Hang Seng DJIA
CNOOC Limited’s stock has increased 156% since its IPO as of Mar.31, 2004
+142%
July 23, 2001CNOOC Ltd. to
become Hang Seng Index Constituent in Record Time Third
Consecutive inclusion market indices
Mar 04, 2002Raises
financing through issue of US$500m Baa2
global bonds
Oct 16, 2001QHD 32-6
development successfully completed
Jan 18, 2002Agrees to buy
Indonesian assets of Repsol-YPF for
US$585m
Aug 23, 2002Acquire approximately 5%
interest in the upstream reserves of the NWS Gas
Project for US$320m
Sep 27, 2002Acquire from BP 12.5%
stake in Indonesian Tangguh LNG gas Joint Venture for
US$275m
Dec 12, 2002CNOOC Ltd. earned Baa1
(positive) rating from Moody's
May 15, 2003Issued US$500 mm 10-year and 30-year global bonds
Signed SPA to acquire reserves in the NWS
Venture
Jul 18, 2003Increased interests in QHD 32-6 and LH 11-1 from BP and Kerr
McGee
Jul 28, 2003Announced significant gas discoveries in Eastern and
South China SeaSep 4, 2003
CNOOC reported
record 75% jump in first-half net profit
Aug 19, 2003Announced plans to
explore and develop gas in East China Sea
Aug 15, 2003Tangguh project chosen as supplier of LNG to SK
Power and POSCO
CNOOC Ltd. Overview
15
Continue to maximize exceptional value to shareholders,and maintain sustainable, stable and profitable growth
Superior ReturnSuperior ReturnLong Dated GrowthLong Dated Growth
SustainabilitySustainability
Adding Reserves Offshore China exploration Opportunistic worldwide exploratio and
acquisitions
Growing Production Active offshore China
development Production uplift from
Indonesia assets
Financial Performance Maintain competitive cost
structure and improve efficiency
Maintain financial prudence Improve capital structure
and increase returns
Developing Natural Gas Business Offshore China gas projects Completion of LNG related upstream
acquisitions Natural gas market development in the
coastal area
CNOOC Ltd. Overview
16
China
Africa
Rich in Petroleum Resources
Frontier Areas with Prolific Mature Areas
Competitive E &P Investment Environment
Good Relationship between China and African Counties
Potential for CNOOC in Africa
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Potential for CNOOC in Morocco
Frontier Offshore for Exploration
Existence of Oil & Gas Discoveries in Neighboring Basins
Favorable Fiscal Terms and Policies
Economically & Politically Stable and Good Partnership
THANKS!THANKS!