CNOOC's Total Revenue Jumps 69% in 3Q


CNOOC announced that its total revenue (unaudited) amounted to RMB30.9 billion (equivalent to US$4.5 billion) for the third quarter of 2008, representing a significant increase of 69.1% year-on-year. The Company also achieved a total net daily production of 549,589 barrels of oil equivalent ("BOE"), a strong increase of 15.2% over last year.

During the period, the Company's oil and gas revenue (unaudited) reached RMB 30.5 billion (equivalent to US$4.5 billion), representing a YOY increase of 67.9%. For the first three quarters, the Company's total oil and gas revenue (unaudited) hit RMB 84.95 billion (US$12.16 billion) with an increase of 65.3%.

For the third quarter, the Company's net production in offshore China recorded 480,857 BOE per day. Among which, crude and liquid production reached 407,712 barrels per day while gas production was 424 million cubic feet per day respectively. The 15.2% production growth offshore China is mainly attributable by new projects came on stream in 2008, which are Xijiang 23-1, Wenchang oilfields and new platform of Penglai 19-3 phase II. For the period, net production overseas increased by 15.6% YOY, which was 68,732 BOE per day.

For the third quarter, the Company's realized crude price increased by 58.7%, reached US$106.94 per barrel. Its realized gas price was US $3.83 per thousand cubic feet, a YOY growth of 11.7%.

In the third quarter of 2008, the Company announced the successful start-up of two new projects, Wenchang oilfields and platform B of Penglai 19-3 phase II. For exploration, the Company made 4 new discoveries, namely Bozhong 29-5, Bozhong 35-2 and Bozhong 29-4S and Mila, three of which are independent discoveries in offshore China. The Company also successfully made seven appraisal wells offshore China in the period, five of which were drilled in Jinzhou 25-1 structure, and are expected to be an impressive enhancement of the reserve base and its commercial value.

For the period, the Company's capital expenditure proposal was well executed to support its tight development pipeline and exploration campaign. The Company's capital expenditure increased by 44.9% YOY to approximately RMB10.19 billion (approximately US$1.49 billion).

Fu Chengyu, Chairman and CEO of the Company commented, "The Company has strived to optimize its operating fundamentals as well as leverage external operating environments to serve its corporate value. The remarkable Q3 result shows our effective achievements in both hands."