CNOOC turns to profit on higher realized prices

China’s oil and gas producer and LNG stakeholder, CNOOC reported a rise in profit for the first six months of 2017.

The profit for the period reached 16.25 billion Chinese yuan ($2.43 billion) as the company cut its production costs by 9 percent to $31.74/boe during the period. This compares to a 7.73 billion Chinese yuan net loss in the corresponding period in 2016.

The net production of oil and gas reached 237.9 million barrels of oil equivalent during the period, dropping 1.5 percent from the corresponding period in 2016.

However, the average realized oil price was at $50.43 per barrel, representing an increase of 33.8 percent year-on-year while the average realized gas price rose 3.5 percent YoY to $5.68 per thousand cubic feet for the period.

CNOOC’s oil and gas sales revenue reached 74.94 billion Chinese yuan, representing an increase of 36.1 percent YoY.

During the period, CNOOC made 14 new discoveries, 13 of which have been made off China, starting up four out of five new projects planned for 2017.

1 CNY = 0.150120 USD