CNOOC Ltd. oil & gas revenues move up on higher prices

Chinese oil producer CNOOC Limited recorded an increase in its oil and gas sales revenues during  the third quarter of 2017 helped by higher prices, despite lower domestic output. 

For the third quarter of the year, the company achieved a total net production of 116.2 million barrels of oil equivalent (BOE), representing a decrease of 1.3% year over year (YoY).

Production from offshore China decreased 2.4% YoY to 73.8 million BOE, mainly due to production decline of producing fields. Overseas production increased 0.7% YoY to 42.4 million BOE.

For the third quarter of the year, the unaudited oil and gas sales revenue of the company reached approximately RMB 35.94 billion, representing an increase of 16.9% YoY, mainly due to the increase of average realized oil and gas prices.

During the period, the company’s average realized oil price increased 20.4% YoY to $50.87 per barrel, mainly due to the increased international oil prices. The company’s average realized gas price was $6.05 per thousand cubic feet, representing an increase of 15.9% YoY, mainly due to the increasing percentage of sale volume of high-price in project offshore China and the rise of benchmark gas prices overseas.

During the period, the company made five new discoveries and drilled nine successful appraisal wells. Successful appraisal of Wushi 16-1W is expected to promote the development of Wushi oilfield Phase II and build it into a mid-to-large size oilfield. In overseas, new progress of exploration in Stabroek block has been made, including the successful appraisal well Payara-2 and the new discovery well Turbot-1.

To date, four out of five new projects planned for this year have started production. Weizhou 12-2 oil field Phase II is under installation and commissioning and expected to start production within the year.

For the third quarter of the year, the company’s capital expenditure reached approximately RMB 11.78 billion, almost flat from the same period of last year.