China’s oil and gas producer CNOOC Limited has returned to profit in the first half of the year pushed up by 36% increase in oil and gas sales revenues, higher oil prices and further cost-cutting efforts. 

The company’s net production of oil and gas during the period amounted to 237.9 million barrels of oil equivalent (boe), completing 52% of full-year target. Compared to the same period last year, the Chinese company’s output decreased from 241.5 mmboe or dropped by 1.5%.

CNOOC’s full year production target of 450-460 mmboe remains unchanged.

In the first half of 2017, the company’s average realized oil price was $50.43 per barrel, representing an increase of 33.8% year-on-year (YoY). The average realized natural gas price increased by 3.5% YoY to $5.68 per thousand cubic feet.

The company’s oil and gas sales revenue reached RMB 74.94 billion ($11.3 billion), representing an increase of 36.1% YoY from RMB 55.08 billion ($8.3 billion) in the first half of 2016.

Due to further cost-control efforts, the company’s all-in cost for the first half of the year was $31.74/BOE, representing a decrease of 9% YoY. Operating expense was $7.16/BOE, representing a decrease of 3.5% YoY.

The company’s net profit for the first half of the year amounted to RMB 16.25 billion ($2.4 billion), compared to a loss of RMB 7.7 billion ($1.16 billion) in the first half of 2016.

To date, four out of five new projects planned for 2017 have already started production and another project, Weizhou 12-2 oil field phase II, is also progressing smoothly, the company said.

Offshore Energy Today Staff

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