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Posts Tagged ‘Stampede’

China surrenders at Appomattox, exits Gulf of America

Posted in Canada, energy policy, Gulf of Mexico, Offshore Energy - General, UK, tagged , , , , on April 11, 2025| Leave a Comment »

Appomattox FPU

China National Offshore Oil Corp. (CNOOC) has surrendered its 21% interest in the Appomattox (Mississippi Canyon 391, 392, and 393) project and its 25% stake in Stampede (Green Canyon 468, 511, and 512). Those ownership positions were acquired in CNOOC’s takeover of Calgary-based Nexen in 2013.

CNOOC had been quite positive about the prospects for Appomattox and Stampede, which are producing at higher than expected rates. However, because of sanctions concerns, an exit from operations in the US, Canada, and the UK had been under consideration for at least 2 years.

CNOOC’s shares of Appomattox and Stampede were acquired by INEOS Energy, a UK company.

The transaction is also discussed in CNOOC’s 2024 Annual Report (p.19).

Stampede TLP

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CNOOC holding onto Gulf of Mexico leases

Posted in energy policy, Gulf of Mexico, Guyana, Offshore Energy - General, tagged , , , , , , on March 15, 2024| Leave a Comment »

Appomattox FPU
Stampede TLP

In light of the TikTok drama in Washington, I thought I’d take another look at Chinese ownership of Gulf of Mexico oil and gas leases.

A year ago, it was reported that State owned China National Offshore Oil Corp. (CNOOC) was considering an exit from its operations in the US, Canada, and the UK because of sanctions concerns. That may still be the case for other properties, but CNOOC has retained its Gulf of Mexico lease interests.

Per BOEM lease data, CNOOC continues to own 25% and 21% interest respectively in the important Stampede (Green Canyon 468, 511, and 512) and Appomattox (Mississippi Canyon 391, 392, and 393) deepwater projects. CNOOC reports are positive on those operations, noting that the production wells have performed better than expected.

CNOOC also owns interest in five other GoM leases. No CNOOC lease interest has been assigned to other companies in the past two years.

As is the case with CNOOC’s position in Guyana’s Stabroek block, their GoM lease holdings were acquired as part of CNOOC’s takeover of Nexen in 2013.

I welcome foreign investment in our offshore program, and see little downside in Chinese entities owning minority shares of OCS leases. GoM lease ownership does advance CNOOC’s understanding of deepwater exploration and development technology, but that knowledge can also be acquired elsewhere, sometimes in partnership with US companies (as is the case in Guyana).

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Preliminary thoughts on Chevron’s acquisition of Hess

Posted in Gulf of Mexico, Guyana, Offshore Energy - General, Uncategorized, tagged , , , , , , on October 23, 2023| Leave a Comment »

“Stampede,” Gulf of Mexico: Hess 25% owner and operator, Chevron 25% owner
  • Most importantly, both companies have excellent safety and compliance records as evidenced by their Honor Roll achievements.
  • Hess is an attractive company with impressive assets. Were there other suitors?
  • Chevron is currently a partner on the Stampede, Esox, and Tubular Bells deepwater projects that are operated by Hess. There is thus an established deepwater development relationship.
  • The acquisition of Hess means that Exxon and Chevron will now be partners in Guyana. That should be interesting.
  • Chevron’s CEO Mike Wirth is quoted as saying “We’ve got too many CEOs per BOE, so consolidation is natural.” That comment seems a bit self-serving, but makes sense from the perspective of an acquiring CEO. Employees of the companies being acquired may have a somewhat different view.
  • In the Gulf of Mexico, will the combined company be greater than the sum of the parts in terms of lease acquisition, exploration, and development?
  • Will combining the companies limit the diversity of geological assessments and exploration strategies?
  • Consolidation affects participation in workshops and on committees engaged in assessing technology and developing standards. More limited participation in these activities, which are critical to offshore safety, was a justified concern of my former boss, the late Carolita Kallaur.
  • Add Hess to the list of important offshore operators that, for all intents and purposes, no longer exist. This list includes (among others): Amoco, Arco, Texaco, Getty, Gulf, Unocal, Sun, Anadarko, BHP, Mobil, Phillips (or Conoco), Noble Energy, Pennzoil, Kerr-McGee, and Newfield.

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China’s US OCS leases – exit coming?

Posted in Uncategorized, tagged , , , , , , , , on March 2, 2023| Leave a Comment »

Some may not be aware that the Chinese government, through a fully owned subsidiary of the China National Offshore Oil Corp. (CNOOC), is a leaseholder in the US Gulf of Mexico. Per BOEM records, CNOOC Petroleum USA Inc currently has ownership in 12 OCS leases. Most significantly, CNOOC holds 21% interest in the Appomattox Field, operated by Shell, and a 25% working interest in Stampede, operated by Hess. Peak oil production for these projects is expected to be 175,000 bopd for Appomattox and up to 80,000 bopd for Stampede.

CNOOC acquired the Gulf of Mexico properties through its purchase of Nexen, a Canadian company, in 2013.

The state-owned Chinese oil explorer surrendered operating control of those assets to quell U.S. national security concerns, said two people familiar with the agreement who asked not to be named because the terms aren’t public.

FInancial Post

Reuters has reported that CNOOC is considering an exit from its operations in the US, Canada, and the UK because of sanctions concerns. JPMorgan is reportedly assisting with the sale of the US assets.

Stampede TLP

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