CNOOC lifts quarterly output by 8.5%

by on October 24, 2012 9:32 am BST

The New York- and Hong Kong-listed oil giant saw total net
production rise 8.5% year on year to 87.8 million barrels of oil equivalent (boe)
in the third quarter.

CNOOC put the rise down to “the production contribution from
the new projects and new development wells, the continuous improvement of
overseas production and the stable performance of producing oil and gas fields”.

The Chinese player is now forecasting “strong growth momentum”
in the fourth quarter and for annual production volumes to reach between 335
million and 345 million boe.

Chief executive Li Fanrong said that over the three-month
period the Chinese state player had “drilled eight successful appraisal wells
to further enhance reserve and production growth”, including firming up the
Kenli 9-1 and Dongfang 13-2 discoveries.

The company also brought the Weizhou 6-9/6-10 and Weizhou 11-2 wells on stream in the South China Sea’s Beibu Gulf.

The Chinese offshore player also hit the headlines during the third quarter with its proposed $15.1 billion takeover bid for Canadian producer Nexen, which remains under review.

The Bohai Bay region remained the company’s strongest oil
producer during the third quarter, contributing more than half its crude output of 69.6 million barrels,
while western south China Sea and international operations yielded the most gas
within the tally of 104.7 billion cubic feet.

Total unaudited oil and gas sales revenues rose 4.7%
year-on-year to around RMB48.44 billion for the third quarter, with capital
expenditures up 46.7% year-on-year to RMB15 billion.

CNOOC’s average realized oil price decreased 6.5%
year-on-year to $104.74 per barrel while its average realized gas price
increased 12.5% year-on-year to US$5.83 per thousand cubic feet.