Page 10 - AsianOil Week 08 2022

AsianOil EAST ASIA AsianOil

These agreements
include at least four
pacts to jointly develop
prospective oilfields
off the country’s east
coast.

CNOOC strikes $13bn of deals

in bid to avert energy crunch

INVESTMENT THE Chinese government is working to ensure closely watched, though. Beijing has in the past
there is no future repetition of the oil supply clashed, most notably with Tokyo, on potential
squeeze felt throughout much of 2021. State-run gas field exploration in the region of their shared
China National Offshore Oil Corp. (CNOOC) maritime border, and over recognition of what
said that it has agreed a total of $13bn in deals China deems to be natural extensions of its con-
to help the country boost its future supplies of tinental shelf.
oil and gas. In recent years, Beijing has been trying to
The company is China’s largest offshore oper- limit foreign imports and reduce its dependence
ator, and one of the most advanced oil and gas on overseas oil and gas. Just last year, however,
drilling enterprises in the country. It used cel- in the midst of the global energy crunch, China
ebrations to mark the 40th anniversary of its overtook Japan to become the world’s largest
founding in 1982 to announce last week that LNG importer for the first time. It looks likely CNOOC will
it has signed a total of 13 deals with 12 foreign to remain a major importer of gas and oil for the
entities on a range of options to guarantee fuel foreseeable future despite its efforts to reduce soon increase
supplies in the years ahead. dependence on imports.
These agreements include at least four pacts To help alleviate Chinese energy worries on domestic output
to jointly develop prospective oilfields off the the home front, CNOOC will soon increase
country’s east coast with France’s TotalEnergies, domestic output at its oilfields in the South at its oilfields in
US-based ConocoPhillips, Australia’s ROC and China Sea, as well as in Bohai Bay. It is believed the South China
the US’ Smart Oil. that output in these two areas could increase by
According to Chinese state media, other up to 40mn barrels over the course of the coming Sea, as well as in
CNOOC deals have been struck with Kuwait’s year.
National Petroleum Co. (KNPC) and the US’ CNOOC’s Bohai oilfield is of particular Bohai Bay.
Energy Transfer for oil and LNG imports. importance to China. As the country’s largest
Sources indicate that neither CNOOC nor source of domestic crude, the Bohai oilfield
KNPC were willing to release specific details recorded an output of 30.1mn tonnes last year;
in the immediate wake of the news being made a figure that accounted for almost half of total
public. However, it is now understood that the domestic output in China in 2021.
deal with Energy Transfer will see LNG supplies As the country’s third-largest state-owned
shipped from its planned Lake Charles LNG ter- entity, CNOOC is not acting alone, however.
minal on the US Gulf Coast. PetroChina and Sinopec are also making
It will be the developments off the Chinese moves in an effort to help avoid the rationing
coast in waters closely monitored by Japan, and blackouts that affected many areas of the
South Korea, and Taiwan that will be the most country in late 2020.™

P10 www. NEWSBASE .com Week 08 25•February•2022