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exploration and production at home and 10.4% rise in production from domestic assets,
abroad in order to achieve the target. while output from foreign fields contracted by
The move comes after the company’s 4.6%.
third-quarter revenue shrank by 26.8% year on On the same day it posted its results, CNOOC
year to CNY35.55bn ($5.32bn). While realised Ltd announced that it had started up production
gas prices gained 2% on the year to $5.85 per from the shallow-water Bozhong 19-6 gas and
1,000 cubic feet ($206.56 per 1,000 cubic metres), condensate field, which is located in the central
oil prices shrank 29% to $43.03 per barrel. Bohai Sea. The company has built a new well-
Weaker international crude prices offset the head platform at the field, which has been tied
company’s 5.1% increase in net oil and gas pro- into existing processing facilities at Bozhong
duction, which amounted to 131.2mn barrels of 13-1, and intends to drill seven production wells
oil equivalent (boe) for the period. and one water source well.
CNOOC Ltd announced plans earlier this Field production is projected to peak before
year to focus investment on domestic energy the end of this year, bolstering the company’s gas
projects at the expense of some of its overseas output by around 35.32mn cubic feet (1bn cubic
developments and this strategy was reflected metres) per day and condensate output by 5,720
in its production mix. The company recorded a barrels per day (bpd).™

Total delivers carbon

neutral LNG cargo to CNOOC

PROJECTS & FRANCE’S Total announced this week that it
COMPANIES had delivered its first-ever cargo of carbon neu-
tral LNG. The cargo was loaded at the Ichthys
LNG terminal in Australia and delivered to
China National Offshore Oil Corp. (CNOOC)
on September 29 at the Dapeng terminal in
China, Total said in an October 20 statement.
The carbon footprint of the LNG shipment
was offset using Verified Carbon Standards
(VCS) emissions certificates to finance two
projects. The first was the Hebei Guyuan wind
power project, which aims to reduce emissions
from coal-based power generation in northern
China. The second was the Kariba REDD+ For-
est Protection Project, aimed at protecting Zim-
babwe’s forests.
For the cargo to be deemed carbon neutral, its
entire carbon footprint had to be offset.
“This first LNG shipment, whose carbon
emissions have been offset throughout the value
chain, represents a new step as we seek to sup- Japan’s JERA has also made its first foray into
port our customers towards carbon neutrality,” carbon neutral LNG, selling a carbon neutral
stated Total’s president for gas, Laurent Vivier. cargo to India in June 2019.
“The development of LNG is essential to meet Meanwhile, Singapore’s Pavilion Energy is
the growth in global demand for energy while in the process of concluding a tender for the
reducing the carbon intensity of the energy supply of LNG whose emissions have been
products consumed.” offset. When it launched the tender in April,
Total joins a small handful of companies that the company said its ultimate goal for LNG
have sold carbon neutral LNG cargoes to date. deliveries was carbon neutrality.
Royal Dutch Shell accounts for the majority, hav- These cargoes and tender represent only a
ing reported selling five carbon neutral LNG car- very small fraction of the LNG market, but have
goes since mid-2019. All of these cargoes went nonetheless attracted considerable attention.
to Asian companies, including two to CNOOC. More can be expected.™

Week 43 29•October•2020 www. NEWSBASE .com P7