Is Weizhou 11-4’s New Output Hub Altering The Investment Case For CNOOC (SEHK:883)?

• CNOOC Limited recently commenced production at the Weizhou 11-4 Oilfield Adjustment and Satellite Fields Development Project in the Beibu Gulf Basin, using a new unmanned wellhead platform, a central processing platform linked to existing infrastructure, and planning 35 wells in about 43-meter water depth to produce light crude.
• The project’s “three offshore processing centers + one onshore terminal” hub design is intended to unlock more offshore capacity and support regional energy security.
• We’ll now examine how bringing the Weizhou 11-4 project onstream, with its light crude output, may influence CNOOC’s investment narrative.

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CNOOC Investment Narrative Recap

To own CNOOC, you generally need to believe in its ability to keep converting offshore oil and gas projects into steady cash flows despite energy transition and policy pressures. Bringing Weizhou 11-4 onstream supports near term production and infrastructure utilization, but does not materially change the key short term catalyst, which is disciplined delivery of its broader project pipeline, or the main risk, which remains long term exposure to fossil fuels and China focused offshore assets.

The most relevant recent announcement alongside Weizhou 11-4 is the start up of the Dongfang 1-1 Gas Field (13-3 Block) in July 2025, which also feeds into CNOOC’s effort to sustain volumes from offshore China. Together, these projects speak directly to the company’s production and cash flow catalysts, while still leaving investors to weigh concentration, regulatory and environmental risks around offshore Chinese operations.

Yet behind these new barrels and supportive cash flows, investors should be aware of the concentration risk around offshore China and...

Read the full narrative on CNOOC (it's free!)

CNOOC's narrative projects CN¥418.9 billion revenue and CN¥134.5 billion earnings by 2028. This requires 1.4% yearly revenue growth and about CN¥6.8 billion earnings increase from roughly CN¥127.7 billion today.

Uncover how CNOOC's forecasts yield a HK$22.46 fair value, in line with its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community currently peg CNOOC’s fair value between HK$7 and HK$65.11, highlighting sharply different expectations. You can weigh those views against the company’s heavy reliance on offshore Chinese assets and consider what that might mean for long term resilience and returns.

Explore 6 other fair value estimates on CNOOC - why the stock might be worth less than half the current price!

Build Your Own CNOOC Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CNOOC research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free CNOOC research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CNOOC's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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