CNOOC H1 2014 profit falls 2.3 pct

CNOOC Limited announced its interim results for the six months ended June 30, 2014.

For the first half of the year, the company’s total net oil and gas production reached 211.6 million barrels of oil equivalent (BOE), up 6.8% year-on-year (YoY), with 36.3 million BOE contributed by Nexen.

Benefited from the growth of net oil and gas production and increase in realized oil and gas prices, the company recorded RMB117.1 billion in oil and gas sales revenue, a YoY increase of 5.7%; meanwhile, net profit fell 2.3% YoY to RMB33.59 billion.

In the first half of 2014, the company’s all-in cost was US$43.20 per BOE, up slightly by 2.0 % YoY, while operating cost was US$11.78 per BOE, up 7.0 % YoY, mainly attributable to the consolidation of two more months of Nexen’s performance.

In the area of exploration, the company made 9 new discoveries and 23 successful appraisal wells. Among them, Lingshui 17-2, discovered by “Haiyangshiyou 981”, was successfully tested and is expected to become the first large-sized deepwater gas field made by independent exploration activities. While Luda 16-3 South structure is expected to become a mid-sized discovery after appraisal, Kenli 16-1 structure uncovers the good exploration potential of the southern slope of Laizhou Bay Sag in Bohai.

Li Fanrong, CEO of the company commented, “During the first half of 2014, we have actively pushed ahead different areas of our business. Good progress was made in the production and operation and a healthy financial position was maintained. In the second half of the year, we will continue to work diligently to ensure that we meet our annual production and business targets.”

1 Chinese yuan = 0.162729 U.S. dollars

Press Release, August 28, 2014; Image: CNOOC