CNOOC posts big net loss despite modest production increase

China National Offshore Oil Corp. Ltd. posted a net loss of ¥7.74 billion for the first 6 months of 2016 against a profit of ¥14.73 billion a year earlier.

The company’s average realized oil price was $37.70/bbl, a decline of 34.5% from a year earlier. The natural gas price dropped by 16.2% to $5.49/Mcf.

CNOOC’s net oil and gas production worldwide in the first 6 months of 2016 reached 241.5 million boe, a 0.6% increase from a year earlier (OGJ Online, Aug. 27, 2015). Liquids production was up 1%, but natural gas was down 2%.

Domestic net production was 160.1 million boe, a 2.4% increase, and benefitted from production from two new projects in the western South China Sea and Bohai. Two others planned for 2016 are mechanically complete with expected startups by yearend.

Net production outside China decreased 2.9% to 81.5 million boe due to shutdown of the Long Lake oil sands project in Alberta (OGJ Online, July 13, 2016).

CNOOC said it made six discoveries offshore China and drilled 26 appraisal wells, of which 20 were offshore China.

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