Chinese oil and gas producer CNOOC Limited reported on Wednesday that the oil and gas output in the third quarter of the year dropped by 7.7 percent while its sales revenues dropped by more than 15 percent.
In its operational statistics for the third quarter of 2016 on Wednesday, the company said it achieved total net production of 117.7 million barrels of oil equivalent (boe) for the third quarter of the year, representing a decrease of 7.7% year-on-year, mainly due to the decline of production volume in oil and gas fields and weak demand in the domestic downstream gas market.
During the period, the company made one new discovery and drilled ten appraisal wells offshore China. Furthermore, during the third quarter, Weizhou 6-9/6-10 comprehensive adjustment project and Enping 18-1 oilfield started production. In addition, the four projects that were planned to come on stream in 2016 have all started production.
O&G sales revenues fall
For the third quarter of the year, the unaudited oil and gas sales revenue of the company reached approximately RMB 30.75 billion ($4.5B), representing a decrease of 15.2% YoY. The company’s average realized oil price decreased by 13.5% YoY to $42.26 per barrel, while the average realized gas price was $5.22 per thousand cubic feet, down 18.6% YoY.
To cope with the low oil price environment, the company said it continued to lower costs, enhance efficiency and cut capital expenditure for the whole year. During the period, the company’s capital expenditure amounted to approximately RMB 11.67 billion, representing a decrease of 20.9% YoY.
Yang Hua, Chairman and CEO of the Company, said, “In view of the market challenges during the third quarter of the year, the company endeavored to lower costs and enhance efficiency, as well as made proactive efforts in all fields. In addition, the company is confident in meeting the full year target of its key operating indicators.”