CNOOC sees revenues down due to lower oil prices

BEIJING - China National Offshore Oil Corp (CNOOC), China's top offshore oil and gas producer, Thursday posted lower revenues for the first quarter (Q1), citing the sharp decrease in international oil prices.

For the first three months, the unaudited oil and gas sales revenue of the company was about 24.64 billion yuan ($3.8 billion), down 30.7 percent year on year, said the CNOOC in a report.

The company's average oil price decreased 39.1 percent year on year to $32.54 per barrel while the average realized gas price was $5.69 per thousand cubic feet, down 14.8 percent.

The company achieved total net production of 124.3 million barrels of oil equivalent for Q1, up 5.1 percent year on year, mainly attributable to the production contribution from new projects in China's offshore areas that commenced production last year.

To cut costs, the company slashed its capital expenditure by 39.2 percent year on year in Q1 to about 9.69 billion yuan, it said.

The company achieved stable results for production and operation in Q1 despite various challenges, said Li Fanrong, CEO of CNOOC.

"Going forward, we will continue with our operating strategies under the low oil price environment, intensify reform and innovation, and reinforce the sustainable development of the company," he added.

For the projects planned to commence production this year, Kenli 10-4 oilfield and Panyu 11-5 oilfield have commenced production, and the other projects progressed smoothly, CNOOC said.