China Cnooc's H1 Profit Drops 66%

Chinese state-run Cnooc on August 19 said its profit during the six months to June 30 (H1) dropped by 65.7% yr/yr due to lower realised oil and gas price.

The company’s profit stood at yuan 10.38bn ($1.50bn) compared with yuan 30.29bn in the same period of last year. The average realised oil price was down 40.1% yr/yr while average realised gas price dropped 2.8%, Cnooc said.

In H1 the company made five discoveries, and 20 oil and gas bearing structures were successfully appraised. Oil and gas production stood at 257.9mn boe, representing an increase of 6.1% yr/yr. Among the ten new projects scheduled to start production this year, Liza oilfield phase I, Penglai 19-3 oilfield block 4 adjustment/ Penglai 19-9 oilfield phase II, Qinhuangdao 33-1 South oilfield phase I and Luda 21-2/ Luda 16-3 oilfield regional development project have successfully started production, it said.

Cnooc’s capital expenditure in H1 was yuan 35.6bn compared with yuan 33.6bn in the same period of last year. The company said it cut its all-in production cost to $25.72/b, 11% below the year-earlier level.