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 15, 2004
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.)
PRESS RELEASE
CNOOC LIMITED COMMITTED TO LONG-TERM GROWTH AND FOCUSED ON NEAR-
TERM OPERATION IMPROVEMENT
(Hong Kong, January 15, 2004) - CNOOC Limited (NYSE: CEO, SEHK: 883, "CNOOC"
and the "Company") today announced its business strategy and development plan
for the year 2004.
CNOOC's target net production volume offshore China in 2004 is approximately
118-123 million BOE (barrels of oil equivalent), while its estimated net
production volume was 108 million BOE in 2003. Its Indonesian unit is expected
to report a net entitlement volume of approximately 22 million BOE (at WTI
US$23.7/bbl). The unit's reported volume changes in a reverse direction by
approximately 500,000 BOE for every dollar change in oil prices due to the
Indonesia PSC structure.
CNOOC is committed to long-term production growth although problems at two of
the offshore China fields, QHD 32-6 in Bohai Bay and PY5-1/4-2 in Eastern
South China Sea, are putting pressure on 2004's production growth rate.
Improvements in these fields will help the Company achieve the upper end of
the target. Despite the problems, the Company continues its efforts to reach
the production target set earlier for 2005.
The Company's 2004 capital budget supports the commitment and reflects the
magnitude of potential future production step-ups. The exploration budget in
2004 is expected to approximately double that in 2003 and reach US$270-290
million. The exploration program is designed to achieve a reserve replacement
rate of 180% in 2004.
The development capital expenditure in 2004 is budgeted at US$1,600 - 1,700
million. Thirteen development projects are expected to come on stream between
2004 and 2005, of which six are expected to be completed in 2004, the biggest
number of projects planned for completion within a year in the history.
Natural gas production and sales, the new growth engine for CNOOC, will
continue to be one of the Company's core businesses. Completion of the
acquisitions of NWS and Gorgon equity interests, together with the Tangguh
project, will supply China's pioneer LNG terminals. CNOOC's grip on China's
expanding LNG infrastructure could further strengthen the Company's dominance
in the coastal China natural gas market.
CNOOC will continue to maintain its cost competitiveness. Even though offshore
China production costs in 2003 and 2004 are experiencing upward pressure,
proactive measures are in place to bring costs further down. Lifting costs are
expected to step down materially in 2005.
"CNOOC Limited's winning strategies remain unchanged. We will continue to
focus on achieving production growth, adding reserves through exploration and
opportunistic acquisitions, developing and expanding the natural gas business
to deliver solid returns to our shareholders. The fundamentals of the company
remain healthy and the management is confident of the future growth of the
company," commented Mr. Fu Chengyu, Chairman and Chief Executive Officer of
the Company.
Presentation Slides--CNOOC Limited's Business Strategy and Growth Plan for
2004 in PDF format are available on the Company's Website www.cnoocltd.com.
Ends
Notes to Editors:
CNOOC LIMITED - BACKGROUND
Incorporated in Hong Kong in August 1999, CNOOC Limited (SEHK: 883; NYSE: CEO)
is the dominant producer of crude oil and natural gas offshore China. CNOOC
Limited is also one of the largest independent crude oil and gas exploration
and production companies in the world.
As of December 31, 2002, its net proved reserves were 2.0 billion
barrels-of-oil equivalents and its net production averaged 353,102 BOE
(unaudited) per day for the first nine months of 2003.
CNOOC Limited is currently engaged in exploration, development and production
in 4 major areas offshore China, which covers Bohai Bay, Western South China
Sea, Eastern South China Sea and East China Sea. The Company is also one of
the largest offshore crude producers in Indonesia.
The Company has about 2,047 employees.
CNOOC LIMITED - RELATIONSHIP WITH ITS PARENT COMPANY
CNOOC Limited, incorporated in Hong Kong, is a 70.6% held subsidiary of China
National Offshore Oil Corporation ("CNOOC"). CNOOC Limited is the sole vehicle
through which CNOOC carries out oil and gas exploration, development,
production and selling activities offshore China and internationally.
CNOOC, the parent company, is involved in the administrative, research, and
services functions for the China offshore petroleum industry as well as other
mid- or downstream 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 CNOOC
Limited (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 in PRC economic, political
and social conditions as well as government policies.
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For further inquiries, please contact:
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Mr. Xiao Zongwei Ms Anne Lui/Ms. Maggie Chan/Ms. Carol Chan
CNOOC Limited Ketchum Newscan Public Relations
Tel: +86 10 8452 1646 Tel: 852-3141-8016/ 852-3141-8063/852-3141-8091
Fax: +86 10 8452 1441 Fax: 852-2510-8199
E-mail: xiaozw@cnooc.com.cn E-mail: anne.lui@knprhk.com
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carol.chan@knprhk.com
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maggie.chan@knprhk.com
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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 19, 2004