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Under development/
producing fields
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Fields under exploration
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Fields being developed in
cooperation with China
US – Colorado
1
KC320 (20%)
Operator: Medell
US – Louisiana /
Texas boundary
2
Big Horn (11.2%)
3
Shoats Creek (5%)
4
S. Bancroft (10%)
5
Danube (10%)
6
Yellowstone (10%)
7
NW Bearhead Creek (10%)
8
East Skinner Lake (10%)
Operator: Indigo Minerals
9
Skinner Lake (6.32%)
Operator: Halcon
foreign exploration and production and to engage with suitable merger and
acquisition opportunities.
Taking foreign exploration as an example: five exploratory wells have been
drilled in the Chali West III block and other areas in Chad; oil and gas have
been discovered in two of the drill sites. A third stage of the project, which
involves the drilling of six confirmatory wells, is currently underway. Two
exploratory wells were drilled in Libya's Murzuq 162 Block and both turned
out to be dry. The outbreak of civil war there forced CPC's local subsidiary to
suspend operations; continuing unrest means that operations have not yet
been resumed and one obligatory well has not yet been completed.
With regard to cooperative exploration, CPC plans to drill one exploratory well
in each of Congo Brazzaville's Haute Mer field and Australia's Ashmore, Cartier
Islands 21 and Ichthys fields during 2015. We are also currently conducting a
3D seismic survey and data interpretation in Niger's Agadam area and planning
both a 500-kilometer time-frequency electromagnetic survey and the drilling of
15 exploratory wells and five confirmatory wells.
CPC obtained numerous oil and gas exploration rights in 2014, including
the 20% of operations at Bofu Lake field in Texas; 2.625% of the output
of Australia's Ichthys field during the development period; and 5% of the
output from Australia's Prelude gas field during the development period. The
procurement of the latter two gas field assets is coupled with a planned floating
liquefied natural gas (FLNG) installation, under which CPC will procure 2.0
million tons of LNG from Shell each year for 20 years starting in 2016. The two
fields are expected to formally begin production in 2017.
CPC turns in an outstanding performance in exploration; this continues along
with M&A activity
CPC's upstream operations began in 1959 and have comprised exploration
and exploitation of both onshore oil and gas fields in Taiwan, offshore in the
Taiwan Strait and overseas. This very successful effort has so far yielded oil
and gas to the value of over NT$200 billion.
CPC's strategy for expansion has been the basis of its continuing engagement
in both the exploration of oil and gas fields worldwide and in opportunistic
M&A activity. Making good use of an outsourcing strategy, CPC has acquired a
high-end assessment and interpretation system and integrated knowledge base
applicable to exploration. The vision inherent in CPC's upstream operations
is to see the company become an international oil and gas exploration
enterprise with high asset value. Apart from, CPC will endeavor to increase its
autonomously controlled oil and gas reserves by both enhancing the value of
its existing foreign operational oil and gas assets and by actively bidding for
shares of newly-opened fields in high-growth core areas as well as seeking
opportunities for the transfer of rights to promising fields.
CPC's exploration and production performance during the most recent three years
Units: NT$1 million
Year
2012
2013
2014
Revenue
16,112 16,631 14,228
Operating costs
8,873 12,159 12,895
Earnings
7,239
4,472
1,333
Pre-tax profit
7,708
4,368
783
Revenue as a share of the company's
total operating revenue*
1.40% 1.40% 1.19%
* Total operating revenue: NT$1.15 trillion in 2012; NT$1.19 trillion in 2013, NT$1.19 trillion in 2014
