CNOOC boosts profit in 1H 2019

CNOOC Limited has increased its oil and gas production by over 2 percent during the first half of the year and boosted its profit for the period as oil and gas sales rose by 4.4 percent. 

In its report for the six months ended June 30, 2019, released on Thursday, CNOOC said it had increased oil and gas reserves and production levels.

The company’s amount of exploration and development activities reached a record high and, in the first half of the year, 16 new discoveries were made and 35 successful appraisal wells were drilled.

Among them, the appraisal of Bozhong 19-6 condensate gas field in Bohai, China achieved successes, adding proved in-place volume of exceeding 100 million tons of oil equivalent, and providing a strong resource foundation for sustainable development of Bohai.

In Stabroek block off Guyana, three new discoveries were made and the recoverable resources were further expanded to more than 6.0 billion barrels of oil equivalent (BOE).

The Glengorm discovery in the North Sea announced at the beginning of the year was proved to be the largest oil and gas discovery in U.K. in the past decade.

Production up in 1H 2019

Oil and gas production remained stable in the first half of the year, with a net production of 243 million BOE, representing an increase of 2.1% year on year.

Among the six new projects scheduled to start production this year, the Egina oilfield, Huizhou 32-5 oilfield comprehensive adjustment/Huizhou 33-1 oilfield joint development project and Appomattox project have started production in the first half of the year.

During the period, the company’s all-in-cost fell below $30 per BOE, reaching $28.99, representing a decrease of 8.9% year on year.

The company’s capital expenditure was RMB 33.7 billion, representing an increase of 60.5% year on year.

Oil and gas sales reached RMB 94.28 billion, representing a year-on-year increase of 4.4%; net profits amounted to RMB 30.25 billion; and earnings per share was RMB 0.68, representing a significant increase of 18.7% year on year.

Yang Hua, Chairman of CNOOC Limited, commented: “In the first half of 2019, with determined efforts to develop the company’s business through innovation, the management and staff devoted efforts in exploration and development activities through a pragmatic and enterprising approach, successfully increased oil and gas reserves and production levels achieving outstanding results in high-quality development.”

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