CNOOC's First Quarter Revenue Dives 31%

Low energy prices have impacted CNOOC Limited’s first quarter revenue which fell 30.7 percent to RMB24.64 billion ($3.8 billion).

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

Total net production of 124.3 million barrels of oil equivalent (BOE) for the first quarter of 2016, representing an increase of 5.1 percent year on year, was mainly attributable to the production contribution from new projects in offshore China that commenced production during 2015, CNOOC said Thursday.

For the first quarter of 2016, the company made three new discoveries and drilled four successful appraisal wells offshore China, among which we successfully appraised Caofeidian 12-6 oil and gas structure. The company also drilled three successful appraisal wells overseas.

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.

For the first quarter of 2016, CNOOC's capital expenditure reached approximately RMB9.69 billion, representing a decrease of 39.2 percent on year, mainly because the company further decreased capex budget for the whole year to reflect low oil price environment.