CNOOC sets lower production target

CNOOC Ltd., the listed arm of China National Offshore Oil Corp., said that the shutdown of its Penglai 19-3 oilfield and a delay in the company’s bid to purchase a stake in Pan American Energy (PAE) has caused it to lower its 2011 production target by 6.67%. CNOOC Ltd.’s new annual production target for 2011 is 331 and 341 million barrels of oil equivalent (BOE), down from its original target of 355 to 365 million BOE in January. Penglai 19-3 operator ConocoPhillips China Inc. (COPC) stopped operations at the oilfield July 19 upon the request of the State Oceanic Administration (SOA) because of reported leaks at the oilfield. COPC reported that the company has since plugged the leaks but did not say when production will resume. (August 25, 2011)