SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
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REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For January 22, 2002
CNOOC Limited
(Translation of registrant's name into English)
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65th Floor
Bank of China Tower
One Garden Road
Central, Hong Kong
(Address of principal executive offices)
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(Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F)
Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
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(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A.)
Company Press Release
CNOOC Limited Rehearses its Strategy in 2002
(Hong Kong, January 18, 2002) - CNOOC Limited (NYSE: CEO, SEHK: 883, the
"Company") today announced its strategy and development plan for 2002.
"Our 2002 core strategy remains unchanged. We will continue to focus on
growing production, executing development plan and adding reserves through
exploration," said Mr. Wei Liucheng, Chairman and Chief Executive Officer. "In
addition, we are taking advantage of some highly attractive investment
opportunities that offer our investors additional growth in production and net
income."
The Company's target net production volume in 2002 is 125-130 million BOE
(barrels of oil equivalent). The volume growth continues to be achieved
primarily through the development of its proved undeveloped reserves offshore
China. Three major development projects will be on stream in year 2002. The
announced acquisition of Asia producing assets provides additional production
growth otherwise inaccessible to the Company. The acquired offshore oil and
gas assets tap the Company's offshore operating expertise, establish a strong
foothold in the region's known hydrocarbon province and afford shareholders
immediate earning accretion.
Natural gas (including LNG) will continue to be one of the Company's core
business priorities. The Company is in the best position to capitalize on the
growing demand for natural gas in China, especially in the coastal regions.
The Company will continue its strategy in natural gas exploration and
production, LNG projects and other selected natural gas investments.
The Company's total capital expenditure in 2002 amounts to US$1,500-1,650
million. In addition to the US$585 million acquisition expenditure, capital
expenditures are expected to total US$900-1,050 million offshore China in
2002. The Company will spend US$650-720 million for development projects and
US$180-220 million for independent exploration offshore China. Foreign PSC
partners are expected to invest an additional US$300 million in exploration
offshore China, a 150% increase over 2001. Expected capital expenditures for
the newly acquired Indonesian unit will be approximately US$40-50 million, 90%
of which will be for development projects. The capital plan excluding the
acquisition represents an estimated 30-50% increase over the last year.
The Company will continue to maximize profitability by maintaining financial
prudence, improving its management system and preserving its competitive cost
structure. "For 2002, our focus will continue to maintain the historical
average of below US$10 per BOE for offshore China assets and improve upon
historical averages for the Indonesia Unit," said Mark Qiu, Chief Financial
Officer and Senior Vice President.
"It is an aggressive expansion plan. We have a full investment pipeline to
deploy capital economically even under a conservative oil prices environment,"
commented Mr. Fu Chengyu, COO and President of the Company. "We will focus on
smooth execution and performance."
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Notes to Editors:
CNOOC LIMITED - BACKGROUND
Incorporated in Hong Kong in August 1999, the Company is the dominant producer
of crude oil and natural gas offshore China. The Company is also one of the
largest independent crude oil and gas exploration and production companies in
the world. As of December 31, 2000, its net proved reserves were 1.8 billion
barrels-of-oil equivalents and its net production totaled 239,337 BOE per day.
The Company has interests in 45 crude oil and gas properties in four major
producing areas: Bohai Bay, Western South China Sea, Eastern South China Sea
and East China Sea. The Company is a major oil and gas company in China with
approximately 1,000 employees.
CNOOC LIMITED - RELATIONSHIP WITH ITS PARENT COMPANY
The Company is a 70.6% held subsidiary of China National Offshore Oil
Corporation ("CNOOC"). The Company is the sole vehicle through which CNOOC
carries out oil and gas exploration, development and production activities
offshore China and internationally.
CNOOC, the parent company, is involved in the administrative, research and
services functions for the PRC offshore petroleum industry as well as other
mid- or down-stream petroleum projects.
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This press release contains statements that are not historical facts,
including statements about beliefs and expectations of the directors of the
Company. These forward-looking statements are based on current plans,
estimates and projections, and therefore you should not place undue reliance
on them. Forward-looking statements speak only as of the date they are made,
and the directors of the Company undertake no obligation to update publicly
any of them in light of new information or future events. Forward-looking
statements involve inherent risks and uncertainties. You are cautioned that a
number of important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Such factors include,
but are not limited to, changes of the PRC's economic, political and social
conditions as well as government policies.
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For further enquiries, please contact:
Mr. Xiao Zongwei Ms. Anne Lui/Mr. Henry Chua
CNOOC Limited Ketchum Newscan Public Relations
Tel : +86 10 8452 1646 Tel: +852 3141 8016/+852 3141 8082
Fax: +86 10 8452 1648 Fax: +852 2510 8199
E-mail: xiaozw@cnooc.com.cn Email: anne.lui@knprhk.com
henry.chua@knprhk.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the registrant has duly caused this report to be issued on its
behalf by the undersigned, thereunto duly authorized.
CNOOC Limited
By: /s/ Cao Yunshi
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Name: Cao Yunshi
Title: Company Secretary
Dated: January 22, 2002