China National Offshore Oil Corporation (CNOOC), one of the largest National Oil Companies (NOC) in China, is enjoying rare success on the global stage, with a 25% stake in the multi-billion-barrel Stabroek Block offshore Guyana.
The NOC has interest in operations in countries such as Brazil, Canada, and several parts of Africa but its Guyana stake is by far the most valuable in its international portfolio.
According to consultancy group Wood Mackenzie, NOCs currently account for about half of all global exploration volumes, the vast majority of resource in their own backyard. Rosneft, TPAO (Turkey), Gazprom and CNPC were in the top six for net resource discovered in 2020.
“CNOOC’s exposure to the giant Guyana oil finds has made it a rare exception with success on the global stage, as well as offshore China,” WoodMac said.
The success offshore Guyana has been led by Stabroek Block operator, ExxonMobil, resulting in over 18 discoveries at the 6.6 million acres block since 2015, estimated to contain over 9 billion barrels of oil equivalent resources.
Liza Phase 1, which was sanctioned in 2017, began oil production in December 2019, with peak output rates of 120,000 barrels per day (bpd).
“Typically, the timeline for a project of this scope would be seven to eight years. The pace of development demonstrates the industry leading project execution capabilities of the partners, as well as the collaborative approach,” CNOOC says.
Liza Phase 2 is expected to produce 220,000 bpd when fully on stream in 2022 and the nearby Payara development has first oil targeted for 2024 at a rate of around 220,000 bpd. A fourth development at Yellowtail, the largest to date, is under government review and is expected to come on stream in 2025, producing up to 250,000 bpd.
“With a strong foundation in Guyana, CNOOC International is looking to leverage its experience in other exploration opportunities in the area,” the NOC states.
With the company already having a 10% working interest in the Mero block – a deepwater pre-salt project located in Brazil’s Santos Basin – the next key area of interest would be Suriname, where deepwater prospects adjacent to the Stabroek Block have begun producing several discoveries.
