"High commodity prices helped push CNOOC's profit to a record level in 2003. Even with slight increases in costs, we continue to see margin expansions in operating results. Exploration program delivered impressive results. They have laid foundation for further growth of the Company in the future, "said Fu Chengyu, Chairman and Chief Executive Officer.
In 2003, three development projects commenced production. The Company achieved annual production of 130.2 million boe while maintaining its competitive costs structure with all-in production costs of US$11.08 per boe. The Company's new exploration program resulted in nine discoveries and ten appraisal successes in 2003, achieving a reserve replacement ratio of 238% offshore China with 260 million boe incremental reserve addition. As of December 31, 2003, net oil and gas reserves totaled approximately 2.1 billion boe. "In 2003, we achieved high reserve replacement with lower exploration expenses than those in 2002, maintained competitive production costs and met development targets despite operating challenges and technical difficulties," commented Zhou Shouwei, President of the Company.
The Board of Directors has approved a year-end dividend of HKD 30 cents per share, including a normal dividend of HKD 12 cents and a special dividend of HKD 18 cents per share, which together with the interim dividend of HKD 32 cents per share, will give a total of HKD 62 cents per share dividend. "The financial performance of the Company in 2003 was excellent. The special dividend is an extra-bonus to our shareholders, reflecting this management's confidence in the Company's future and its optimism in commodity price movement," commented Mark Qiu, Chief Financial Officer and Senior Vice President of the Company.
Most Popular Articles