China National Offshore Oil Corporation (CNOOC) increased its total oil production by 13.5 percent to 240.1 million barrels of oil for the first half of 2015, compared to last year, the company announced on Thursday.
China’s biggest offshore oil and gas explorer CNOOC's all-in cost was US$41.24 per barrel of oil equivalent, down 4.5 percent year-on-year, while operating cost was US$9.60 per barrel of oil down 18.5 percent year on year.
Production was up 'primarily due to the production contribution from newly commenced projects in Bohai and the Eastern South China Sea,' said the company.
Production from offshore China rose by 19.1 percent year on year to 156.3 million per barrel of oil equivalent and production from overseas was 83.9 million per barrel of oil equivalent, up 4.4 percent year on year.
The Company’s 2015 full year production target of 475-495 million per barrel of oil equivalent remains same.
The Company’s average realized oil price was $57.53 per barrel in the first half of 2015, representing a decline of 45.9 percent year on year, while the average realized natural gas price rose by 1.7 percent year on year to $6.55 per thousand cubic feet.
Due to the substantial decline in realized oil prices, the Company’s oil and gas sales revenue were RMB 77.03 billion (+$12.03 billion), representing a decline of 34.2 percent year on year, and net profit fell 56.1 percent year on year to RMB14.73 billion ($2.30 billion).
'We will fortify our confidence about the future, remain steadfast in implementing our established strategy, and pursue high-quality, effective and sustainable development.' Yang Hua, chairman of the company said in the release.
'As a result of these initiatives, our exploration, development and production activities have maintained stable growth, and major financial indicators remained healthy,' Li Fanrong, CEO of the company, said.
'In the second half of the year, we will effectively execute the year’s operational strategy under the guidance of the Company’s growth strategy, proactively deal with the adverse environment of low oil prices and ensure that all annual production and operation targets for the year are achieved,' said Li.
In the first half of the year, the company made six new discoveries and drilled 21 appraisal wells. In offshore China, the Company made a mid-sized light crude oil discovery in Eastern South China Sea, namely Liuhua 20-2, which is expected to facilitate the joint development with the adjacent Liuhua 16-2 and Liuhua 23-1 oil and gas structures, said the company.
By Huseyin Erdogan
Anadolu Agency
huseyin.erdogan@aa.com.tr