CNOOC announces 3Q19 operational results

The company achieved a total net production of 124.8 million boe for 3Q19, representing an increase of 9.7% y/y. Production from offshore China increased 8.9% y/y to 80.2 million boe, mainly attributable to production growth from the commencement of new projects. Overseas production increased 11.2% y/y to 44.6 million boe, mainly due to the contribution from the new projects of Egina and Appomattox.

During the period, the Company made three new discoveries and drilled 19 successful appraisal wells. In offshore China, Kenli 6-1 in Bohai was successfully appraised and is expected to be a mid-sized oil and gas structure. In Guyana, the new discovery of Tripletail was made in the Stabroek block, which is the fourteenth oil discovery achieved in the block and will support the future development of the Turbot area.

On development and production, three out of six new projects planned for this year have commenced production. Bozhong 34-9 oilfield, Caofeidian 11-1/11-6 comprehensive adjustment project and Wenchang 13-2 comprehensive adjustment project are undergoing offshore commissioning.

The unaudited oil and gas sales revenue of the company reached approximately RMB48.34 billion for 3Q19, representing an increase of 0.8% y/y, mainly due to the increase in production offset the decrease in realised prices. During this quarter, the company’s average realised oil price decreased 14.9% y/y to US$60.89 per barrel, which is in line with the international oil prices. The company’s average realised gas price decreased 8.8% y/y to US$5.70 per thousand cubic feet, mainly due to the increased proportion of gas production with lower realised gas price.

For 3Q19, the company's capital expenditure increased 27.9% y/y to approximately RMB19.53 billion, mainly due to the significant increase in workload.

Xu Keqiang, President of CNOOC Limited, commented: “In the third quarter, the Company further strengthened its efforts in exploration and development, seeing a steady increase in net production in offshore China and from overseas. The Company is confident of achieving the full-year production and operation targets, and will strive to create maximum and enduring value for its shareholders.”

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/25102019/cnooc-announces-3q19-operational-results/