Cnooc strikes second US shale deal

Cnooc Ltd. reported 2012 profit that missed analyst estimates as China’s biggest offshore oil producer spent more to explore and revive stalled output growth. Net income fell to 63.7 billion yuan ($10.3 billion) in the 12 months ended Dec. 31 from 70.3 billion yuan a year earlier, the company said in a statement to the Hong Kong stock exchange today. That compared with the 65.3 billion yuan mean of 29 analyst estimates compiled by Bloomberg. Sales climbed 2.8 percent to 247.6 billion yuan.

Today is the start of about two weeks of the "Two Meetings". The Chinese People's Political Consultative Conference (CPPCC) opens this morning, the National People's Congress (NPC) starts Tuesday. During these couple of weeks do not expect much official news out of China that is not about these two meetings. Nor should we expect to see delegates with lots of bling, unlike in years past. Between the Internet and the anti-corruption and frugality campaigns wearing and carrying expensive name brands to these meetings may be an invitation to a scandal.

U.S. drillers that set up rigs amid the rolling farmland of eastern Ohio on projections underground shale held US$500-billion of oil are packing up.

Cnooc Ltd., China’s largest offshore oil and natural gas producer, was barred from controlling Gulf of Mexico assets under U.S. terms for approving its $15.1 billion purchase of Nexen Inc., people familiar with the matter said.

CALGARY — China’s CNOOC Ltd. has a business as usual gameplan for Nexen Inc., the Canadian oil and gas company it acquired despite a hostile reaction from Canadians. Li Fanrong, CEO and president of Beijing-based CNOOC, said he respects Canada’s concerns about the $15.1-billion takeover, but argued that China’s main energy companies are run as independent entities and are listed in Hong Kong and New York, answering to their shareholders primarily in Europe, the U.S. and Asia.

TORONTO — Debate over the role of state-owned enterprises (SOEs) in the oil-and-gas industry has been a big and emotional one and led to new restrictions in the oil sands. But a senior executive at one of China’s largest oil companies said future investment in Canada still boils down to one much more basic criterion: Does it make money?

Thomas Mulcair seems to have found his sweet spot in his efforts to relate to the Alberta energy patch. The NDP leader had a rocky start when he took over, slamming fracking and blaming the energy sector for causing Dutch disease. But in Calgary on Tuesday, Mr. Mulcair hit the right notes when he spoke about the need to clarify the rules on foreign investment, particularly by state-owned enterprises like those from China.

Capacity at Hangingstone, in northeastern Alberta, will increase to 30,000 barrels of heavy crude oil a day from about 6,000 to 7,000 barrels Japan Petroleum Exploration Co., the nation’s second-biggest oil explorer, plans to more than quadruple output at its Canadian oil sands project to meet U.S. demand for the fuel.