Chinese oil producer CNOOC Limited saw its production during the first quarter of 2017 drop by 4.2 percent when compared to the year-before period.
The company informed on Thursday that, for the first quarter of the year, it achieved total net production of 119.1 million barrels of oil equivalent (boe), representing a decrease of 4.2% year-on-year (YoY), mainly due to the natural decline of the producing oil and gas fields.
During the period, the company made four new discoveries and drilled five appraisal wells offshore China. Among them, the newly discovered Bozhong 29-6 and Bozhong 29-6S in the mature area of Bohai demonstrated favorable exploration potential of this area, the company said.
The successfully appraised Penglai 7-6 proved to be a mid-size oil and gas structure. The company also made one new discovery and successfully drilled one appraisal wells overseas.
To date, for the projects planned to start production this year, Penglai 19-9 oil field comprehensive adjustment project and the Enping 23-1 oil fields have already come on stream, and the other projects are moving smoothly, the company noted.
For the first quarter of the year, the unaudited oil and gas sales revenue of the company reached approximately RMB 38.39 billion ($5.6B), representing an increase of 55.8% YoY, mainly attributable to the significant rebound in international oil prices.
During the period, the company’s average realized oil price increased by 58.7% YoY to $51.64 per barrel, which was on par with the trend of the international oil prices, while the average realized gas price was $6 per thousand cubic feet, up 5.4% YoY.
For the first quarter of the year, the company’s capital expenditure amounted to approximately RMB 8.67 billion ($1.3B), representing a decrease of 10.6% YoY, mainly due to the YoY decrease in investment on development according to the work schedule arrangement.
Yuan Guangyu, CEO of the company, said, “Despite the continued challenging market conditions, the company has maintained smooth production and operations during the first quarter of the year.”