FP Article on CNOOC redirecting investments to Guyana Published Apr 20, 2022
Opinion: CNOOC-Nexen deal seems like it's about to unravel | Financial Post
A long article written just over a year ago. CNOOC had already long previously invested/established into the Stabroek block with Exxon et. al. when this was written. Below is the only paragraph which seems of real interest for us holding investments in Guyana, if you want to skip the read. Although interesting, nothing really to do with FEC and Guyana but this last paragraph of the article. Isn't the Stabroek concession now producing enough oil to cover furture CapEx from cash flow and not need addtional funds from the original partners to expand to the 1 Million boe/d they have projected?
Obivously, I am wishfully reading into this what I want it to mean. That the published rumors of a FEC sale are true and CNOOC has been dealing with the Pitbull of Colombian business for some time now. And non binding bids have been drafted pending well results. And if so, could a deal be announced before a news release of the full well results? As likely the CNOOC team has full access to the data room and the rig at this point. They will surely know the general results and the success or failure of the Wei, long before a joint news release can be drafted and approved by all partiies involved.
And obviously, since CNOOC is China's
offshore oil company, where best to reinvest their investments? .However, it is somewhat of a chess match now with 4 saleable parts including FEC intact.
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There are hints in the rumours about CNOOC of Beijing’s fears that its assets could be sanctioned by Western governments. That’s not hard to believe. CNOOC’s masters may therefore have other ideas for the company, including listing on the Shanghai stock exchange and re-directing investments to projects in Guyana and the South China Sea. Ironically, because a main worry at the time of the takeover was that CNOOC would not behave like a normal commercial operator, commercial considerations may also be important. The Chinese overpaid for Nexen’s assets in 2012 and weathered a decade of operational challenges, but CNOOC could now be positioned to get its money back because the oil market is so hot.