CNOOC Production Rises, Revenue Falls

CNOOC Limited revealed a year on year production increase, and revenue loss, in its financial results for the third quarter of 2015.

The company achieved a total net production of 127.5 million barrels of oil equivalent during 3Q 2015, representing an increase of 23.8 percent compared to 3Q 2014. Net production from offshore China reached 83.3 million barrels of oil equivalent, a 28.2 percent year on year increase, primarily due to the production contribution from newly commenced projects in Bohai and the Eastern South China Sea. Net production from overseas rose 16.5 percent year on year to 44.3 million barrels of oil equivalent, partly due to new production from the Golden Eagle project in the UK North Sea.

During 3Q 2015, CNOOC made a total of three new discoveries and drilled fourteen appraisal wells offshore China. The Caofeidian 6-4 structure was successfully appraised and proved to be a mid-sized oilfield, which represents a significant breakthrough after several years of oil and gas exploration in western Bohai, and the new Liuhua 21-2 discovery demonstrated the exploration potential of Baiyun Sag in the Pearl River Mouth basin, according to the company.

The unaudited oil and gas sales revenue of CNOOC in 3Q 2015 reached approximately RMB 36.25 billion ($5.70 billion), representing a decline of 32.3 percent year on year. The decrease was largely due to the company’s average realized oil price decline of 50.7 percent year on year to $48.84 per barrel and the average realized natural gas price decline of 3.0 percent year on year to $6.41 per thousand cubic feet.

Facing a low oil price environment, CNOOC has continued to lower costs and enhance efficiency, in addition to reducing its full-year capital expenditure. During the period, the company reduced its capex by 44.0 percent year on year to approximately RMB 14.75 billion ($2.31 billion).

Li Fanrong, CEO of CNOOC, commented in a company statement:

“In the third quarter, the company made smooth progress in overall business, including exploration, development and production. Our cost controls and enhanced efficiency measures were executed effectively and achieved remarkable results as we aimed to proactively respond to the impact of low oil prices. Meanwhile, we are confident that we will achieve our production and operation targets for the year.”



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  What Should Go On Your Electrical Engi... (Jul 25)
 -  AECOM to Lead Permitting for Monkey Is... (Jul 25)
 -  LyondellBasell Plans Its Largest Inves... (Jul 21)
 -  Preparing a Mechanical Engineering Res... (Jul 19)
 -  Tesoro Signs Deal with Pemex to Enter ... (Jul 19)


Most Popular Articles

From the Career Center
Jobs that may interest you
Director of Business Development - Houston, TX
Expertise: Business Development|Sales
Location: Houston
 
Principal Financial Analyst-DIRECT
Expertise: Accounting|Financial Analyst
Location: Houston, TX
 
Sr. Project Manager
Expertise: Project Engineer|Project Management
Location: Odessa, 
 
search for more jobs

Brent Crude Oil : $51.49/BBL 1.02%
Light Crude Oil : $49.04/BBL 0.59%
Natural Gas : $2.97/MMBtu 1.71%
Updated in last 24 hours