CNOOC Limited meets annual oil and gas production goals, hits historic high in net proved reserves

Oil and gas company CNOOC Limited has met its annual oil and gas production goals in 2018 and reached a “historic high” in its net proved reserves.

In its 2018 annual results for the full year 2018, CNOOC said on Thursday it had expanded its oil and gas reserves and production at a steady pace and strengthened its cost control.

Total net oil and gas production of the company achieved 475 million barrels of oil equivalent (BOE), meeting the annual target set at the year beginning.

During the year, the company made 17 commercial discoveries and successfully appraised 17 oil and gas structures.

In offshore China, multiple mid-to-large size oil and gas fields, including Bozhong 19-6 and Bozhong 29-6, were successfully appraised. In overseas, five new world-class discoveries were made in the Stabroek block in Guyana.

CNOOC Limited’s reserve replacement ratio reached 126% and its reserve life improved to 10.5 years. At the end of 2018, the net proved reserves of CNOOC Limited were 4.96 billion BOE, reaching a historic high.

In 2018, the company’s average realized oil price was $67.22 per barrel, representing an increase of 27.7% year-over-year (YoY). The average realized natural gas price was $6.41 per thousand cubic feet, representing an increase of 9.8% YoY. In addition, the company’s oil and gas sales revenue was RMB 185.9 billion, an increase of 22.4% YoY.

The company achieved cost reduction for the fifth consecutive year. In 2018, the company’s all-in cost decreased to $30.39 per BOE by 6.6% YoY, and maintained its cost competitiveness. Due to higher international oil prices and improvements in cost control, the company’s net profit increased to RMB 52.7 billion, representing an increase of 113.5% YoY.

During the year, the capital expenditures were RMB 62.6 billion. In 2018, the company’s basic earnings per share was RMB 1.18. The board of directors has proposed a year-end dividend of HK$0.40 per share (tax inclusive).

Yang Hua, Chairman of CNOOC Limited, said: “The company steadily expanded the oil and gas reserves and production, achieved a significant growth in net profit. In the future, the company will continue to increase oil and gas reserves and production, actively implement low-carbon development strategies, speed up the transformation and upgrading, and continuously create value for shareholders.”