Oil prices rebound brought more revenues to CNOOC Limited during the first quarter of the year when the company recorded an increase of 10.8% in oil and gas sales revenues year over year.
According to its 1Q 2018 report on Friday, the company achieved total net production of 120.1 million barrels of oil equivalent (BOE) for the first quarter of 2018, representing an increase of 0.8% year over year (YoY).
Production from offshore China decreased 1.2% YoY to 77.5 million BOE, mainly due to normal decline of the producing fields. Overseas production increased 4.7% YoY to 42.6 million BOE, mainly driven by production growth of Missan project in Iraq and an increase of interests held by Bridas in Pan American Energy.
During the period, the company made six new discoveries and drilled fifteen successful appraisal wells. In Eastern South China Sea, new discoveries of Enping 10-2 and Enping 15-2 are expected to be jointly developed with Enping 15-1 to become a mid-sized oilfield. Another two new discoveries, Ranger and Pacora, were made at the Stabroek block in Guyana, which represent the sixth and seventh oil discoveries at the block to date.
For the new projects planned to start production this year, Stampede oil field and Weizhou 6-13 oil field have already started production, and other projects have progressed smoothly.
The unaudited oil and gas sales revenue of the company reached approximately RMB 42.54 billion for the first quarter of 2018, representing an increase of 10.8% YoY, mainly due to the significant rebound in international oil prices.
During the period, the company’s average realized oil price increased 23% YoY to $63.50 per barrel, which is in line with the international oil prices trend.
The company’s average realized gas price was $6.47 per thousand cubic feet, increasing by 7.8% YoY, primarily due to the increased volume from gas fields with higher realized gas price.
For the first quarter of 2018, the company’s capital expenditure reached approximately RMB 9.66 billion.
Yuan Guangyu, CEO of the company, said, “In the first quarter of the year, the global economy continued to make a stable recovery. During this time, the company had strong performance meeting its production and operational plan. Building on our experience during the low oil price environment, the company successfully delivered improved growth in the first quarter. Going forward, we will sustain this growth by enhancing quality and efficiency through innovation and maintaining strong cost competitiveness.”