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 23, 2006
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 Announcement
[COMPANY LOGO]
CNOOC Limited
(Translation of registrant's name into English)
(Incorporated in Hong Kong with limited liability under the Companies Ordinance)
(Stock Code: 883)
2006 Business Strategy
In line with its policy of keeping the market informed of its activities, the
Company announces a summary of its business strategy and development plan for
the year 2006.
This announcement contains statements that are not historical facts, including
statements about beliefs and expectations of the directors of the Company on
the Company and its development and future plans. These forward-looking
statements reflect the directors' current views with respect to future events
and are not a guarantee of future performance, and therefore shareholders and
potential investors should not place undue reliance on them. The directors of
the Company undertake no obligation to update or revise publicly any of these
forward-looking statements, whether in light of new information, future events
or otherwise. Forward-looking statements involve inherent risks and
uncertainties. Shareholders and potential investors are cautioned that a
number of 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 the Chinese economic, political and social conditions
and government policies and in the oil and gas industry.
In line with its policy of keeping the market informed of its activities,
CNOOC Limited (the "Company") announces a summary of its business strategy and
development plan for the year 2006.
The Company's total budgeted net production volume in 2006 is approximately
168-170 million BOE (barrels of oil equivalent), approximately a 9%
year-on-year increase over the estimated 153-157 million BOE in 2005. Net
production offshore China is estimated to be 148-149 million BOE in 2006. The
Company's overseas output is expected to be enhanced by the North West Shelf
Project in Australia, which is scheduled to supply gas to Guangdong LNG
terminal in the first half of 2006. With this project, the Company's net
entitlement overseas is expected to reach approximately 20-21 million BOE
(with reference of WTI US$55.3/barrel (or approximately HK$431.34/barrel),
"WTI" is a standard oil price for grades of crude oil).
During the year, ten projects offshore China are expected to come on stream,
two of which are ready for production. Overall, for 2006 and 2007, it is
expected that 16 projects will be completed.
On the exploration front, the Company plans to conduct more drilling, seismic
acquisition activities offshore China, particularly in Bohai Bay and the South
China Sea, in order to explore oil and gas potentials. Overseas exploration
activities will be further strengthened. The exploration budget is estimated
to increase 72% to reach the level of US$455 million (or approximately
HK$3,549 million) and the reserve replacement ratio is targeted to be more
than 100% in 2006.
At the same time, the Company expects to spend US$2.59 billion (or
approximately HK$20.2 billion) in development, a 30% year-on-year increase. In
total, the Company's 2006 capital expenditure is budgeted at approximately
US$3.06 billion (or approximately HK$23.87 billion), 35% up from last year's
figure.
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With the commencement of new gas projects and Guangdong LNG terminal of China
National Offshore Oil Corporation, the parent company of the Company, it is
believed that the Company will further strengthen its leading position in gas
business in costal China.
For the purpose of this announcement, unless otherwise indicated, the
translations of Hong Kong dollars into US dollars have been made at the rate
of HK$7.8 to US$1.00. These translations are for the purposes of illustration
only and no representation is made by the Company that any amounts in Hong
Kong dollars and US dollars can be or could have been converted at the above
rate or any other rates or at all.
As at the date of this announcement, the Board comprises of:
Executive Directors Independent non-executive Directors
Fu Chengyu (Chairman) Sung Hong Chiu
Luo Han Kenneth S. Courtis
Zhou Shouwei Evert Henkes
Cao Xinghe Tse Hau Yin, Aloysius
Wu Zhenfang Lawrence J. Lau
Wu Guangqi
Yang Hua
By Order of the Board
CNOOC Limited
Yunshi Cao
Company Secretary
Hong Kong, 23 January 2006
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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 on Form 6-K to be signed
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 23, 2006
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