CNOOC Limited recorded a 30.7 percent year-on-year (YOY) decline in revenue for the first quarter of 2016 (1Q 2016) to $3.8 billion (CNY 24.64 billion), tracking the sharp fall in global oil prices, the Chinese state-owned offshore oil and gas company said in the release of its financial results Thursday.
A 5.1 percent increase in CNOOC's production -- due to startup of the Kenli 10-4 oilfield, Weizhou 12-2 oilfield joint development project and the Weizhou 11-4 North oilfield Phase II project offshore China -- during the March quarter to 124.3 million barrels of oil equivalent (MMboe) mostly failed to negate the impact of the steep oil price decline on the firm's revenue.
The Chinese company continued to reduce capital expenditure in the low oil price environment, with a 39.2 percent YOY decrease in 1Q 2016 to approximately $1.5 billion (CNY 9.69 billion).
“Despite the changing industry environment and the challenges resulting from low oil prices, the Company achieved stable results for production and operation in the first quarter," CEO Li Fanrong said in the press release.
Meantime, CNOOC made 3 new discoveries and drilled 4 successful appraisal wells offshore China, including the successfully appraised Caofeidian 12-6 oil and gas structure. In addition, the firm drilled three successful appraisal wells overseas.
“Going forward, we will continue with our operating strategies under the low oil price environment, intensify reform and innovation, and reinforce the sustainable development of the Company," Li said.
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