CNOOC Earnings on the Rise

Thursday, August 29, 2019

China's national offshore producer CNOOC Ltd reported a near 19% rise in first-half profit on Thursday, as higher sales of oil and gas offset weaker global oil prices.

The listed arm of state-owned China National Offshore Oil Corp said that it was able to manage the impact on its business of the China-U.S. trade war and CNOOC President Xu Keqiang said the company would boost oil output to offset currency effects amid the escalating trade tensions.

CNOOC said its net profit totalled 30.25 billion yuan ($4.26 billion) for the six months through June. Revenue rose 3% from a year earlier to 108.9 billion yuan.

"The lingering economic and trade disputes, as well as geopolitical instability, may result in further volatility of international oil prices," CNOOC Chairman Yang Hua said in the company's results statement.

However, CNOOC expects the Sino-US trade war to have "limited and controllable" impacts, he said.

"The management team is paying close attention to the trade dispute and preparing risk prevention from our end," said CNOOC President Xu told a briefing.

Total oil and gas sales rose 4.4% to 94.28 billion yuan, with net production of oil and gas up 2.1% at 243 million barrels of oil equivalent.

The offshore oil and gas explorer and producer, one of the world's most cost-efficient among peers, cut its all-in production cost further to $28.99 barrel, 8.9% below the year-ago level.

Total capital spending reached 33.7 billion yuan in the first six months, up 60.5% on year, in line with the company's pledge late last year to keep it elevated at record rates over the next few years.

CNOOC also said it will seek more opportunities to enter onshore energy exploration via China United Coalbed Methane, including shale gas, coalbed methane (CBM) and tight gas, Xu said at the briefing.

China's unconventional gas production will likely reach 41 billion cubic meters (bcm) in 2019, a third of the national gas output, and rise to 46 bcm in 2020, an executive at another Chinese oil giant, CNPC, told a briefing on Thursday.

CNOOC also said it would continue to focus on exploration of mid-to-large sized oil and gas fields. Among the big discoveries made during the first half, Bozhong 19-6, a condensate gas field off north China's Bohai Sea, has added over 100 million tonnes in proven reserves.

The company continued to make progress at large-scale development projects, including the deep-water Lingshui 17-2 and Liuhua 16-2, both in the South China Sea, CNOOC said, without giving further details.

It had previously aimed to start production at Lingshui 17-2, its first full-owned deepwater gas project, in 2020.

It also expects the upcoming national pipeline company, a combination of pipeline assets owned by the big three state-owned energy giants - CNPC, Sinopec and CNOOC - to benefit its downstream market development and pipeline utilization.

CNOOC, however, did not give details on the progress of the establishment of the national pipeline company.


($1 = 7.0928 Chinese yuan)

(Reporting by Chen Aizhu and Muyu Xu; Additional reporting by Felix Tam; Editing by Subhranshu Sahu and Susan Fenton)

Categories: Energy Production

Related Stories

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Woodside Agrees Long-Term LNG Supply with Petronas Unit

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Yinson Production Closes $1B Investment to Drive Further Growth

CNOOC Starts Production at Offshore Field in South China Sea

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Petrovietnam, Petronas Extend PSC for Offshore Block

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com