Offshore staff
HONG KONG – CNOOC Ltd.’s net production during 1Q totaled 131.5 MMboe, an increase of 9.5% year-over-year (YoY).
Production from the company’s fields offshore China rose 9.7% YoY to 87.1 MMboe, mainly attributable to start of new projects and the acquisition of China United Coalbed Methane Corp. Ltd.
Overseas production increased by 9.0% YoY to 44.5 MMboe, mainly due to contribution from new projects including the Egina oilfield offshore Nigeria and the Appomattox oilfield in the US Gulf of Mexico. For the new projects planned to start up this year, Liza Phase 1 offshore Guyana came onstream ahead of schedule in December 2019, and other projects progressed as scheduled.
During the period, the company made two new discoveries and drilled 21 appraisal wells. Offshore China, the Kenli 6-1 oil and gas bearing structure was appraised and became the first large-sized oilfield in the Laibei lower uplift. This further proved the huge exploration potential of the Neogene lithologic reservoir in the Laizhou Bay. CNOOC partnered with ExxonMobil in Uaru, the 16th discovery in the Stabroek block offshore Guyana.
For 1Q 2020, the company’s average realized oil price decreased by 19.3% YoY to $49.03/bbl, which was in line with the trend of international oil prices. Its average realized gas price was $6.38 per thousand cubic feet, decreased by 7.3% YoY, primarily due to the declined gas price in North America.
The unaudited oil and gas sales revenue of the company reached about RMB 39.95 billion ($5.6 billion) during the period, down 5.5% YoY, mainly due to the combined effect of lower realized oil price and increased oil and gas sales volume.
The company’s capex reached about RMB 16.90 billion ($2.4 billion) for 1Q 2020, up 20.1% YoY, as a result of the increased workloads.
Under the current low oil price environment, the company has reduced its annual net production target for 2020 from 520-530 MMboe to 505-515 MMboe and total capex from RMB 85-95 billion ($12-13 billion) to RMB 75-85 billion ($11-12 billion).
CEO Xu Keqiang said: “The global oil and gas market was facing an unprecedented situation in the first quarter of 2020 as impacted by the COVID-19 pandemic and sharp drop of international oil prices. In response to an increasingly complex external environment, CNOOC Ltd. took proactive measures to face the challenges and strived to mitigate the impact. For the rest of the year, we will continue to implement more stringent cost controls, and further strengthen our cash flow management.”
04/29/2020
