CNOOC reports drop in production

China’s oil and gas producer and LNG stakeholder, CNOOC, reported a drop in production during the third quarter of 2017. 

Total net production reached 116.2 million barrels of oil equivalent (BOE), a decrease of 1.3 percent year over year, the company said in a statement.

Production offshore China dropped 2.4 percent to 73.8 million boe, due to the decline in production from the operational fields while overseas production recorded a 0.7 percent dip to 42.4 million boe.

For the third quarter of the year, CNOOC’s unaudited oil and gas sales revenue reached approximately 35.94 billion Chinese yuan ($5.41 billion), representing an increase of 16.9 percent YoY, mainly due to the increase in average realized oil and gas prices.

During the period, the company’s average realized oil price increased 20.4 percent YoY to $50.87 per barrel, which is mainly due to the increased international oil prices.

CNOOC’s average realized gas price was $6.05 per thousand cubic feet, representing an increase of 15.9 percent YoY, mainly due to the increasing percentage of sale volume from projects offshore China and the rise of benchmark gas prices overseas.

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

During the period, the CNOOC made five new discoveries and drilled nine appraisal wells.

To date, four out of five new projects planned for this year have commenced production.

1 CNY = 0.150550 USD