[ET Net News Agency, 14 February 2018] HSBC Global Research said recent news flow
provides a window on CNOOC's (00883) 2018 project development slate, including the
following developments. (1) On 6 February, Hess and CNOOC both announced first oil from
Stampede, Gulf of Mexico, a project in which CNOOC units hold a 25% stake; (2) A newswire
reported (7 Feb 2018) that CNOOC's Ugandan unit is seeking approval to build a power plant
fed by associated gas in oil-rich Hoima district to power both the oil
central processing facility and feed the national grid; (3) Finally, CNOOC will become a
constituent of the Hang Seng China Enterprises Index (HSCEI) from March 2018.
HSBC estiamted CNOOC's share of international production will increase to 42% in 2019
from 36% in 2018, suggesting a surge in overseas output growth of 19% in 2018/19.
The research house said visible progress on overseas development can be a catalyst to
share performance as it drives production, cash flow, earnings and dividend payouts. It
maintained its "buy" rating with an unchanged target price of HK$15. (KL)