Cnooc (ADR: CEO, Hong Kong code 0883) fells 3.05% to HK$15.28 (ADR $196.80) after a disappointing 2012 strategy update. Still, the stock recovers from its intraday low of HK$14.98, which appears is unlikely to be re-tested, especially given the broad market strength. Barclays Capital says the company expects to deliver “essentially no production growth” in 2012 with no update on the Peng Lai 19-3 re-start; a sharp rise in capex reflects a business increasingly having to spend more domestically to sustain a level of growth essentially only half that delivered historically. Still, it says Cnooc reiterated its 6%-10% per annum medium-term guidance and provided better clarity around its project pipeline, which is positive. BarCap keeps its Overweight call on Cnooc with a price target of HK$21.00.

Daiwa also says it’s disappointed by the lack of clarity on the potential resumption of production at Penglai 19-3, and trims its six-month target on Cnooc to HK$20.60 from HK$21.80. Still, it says although Cnooc has faced numerous, and large, setbacks in 2011, its “long-term production growth remains intact,” as offshore China remains under-explored, and with three deepwater wells to be spudded in 2012 in the Pearl River Mouth Basin, “the future looks bright,” and hence its keeps its Buy rating on the stock.