Steady Development with Solid Performance in 1H 2015
HONG KONG, Aug. 26, 2015 /PRNewswire/ -- CNOOC Limited
(the "Company", NYSE: CEO, SEHK: 00883, TSX: CNU) today announced
its interim results for the six months ended June 30, 2015.
In the first half of the year, the Company ensured spending in
exploration in its core area offshore China, and prioritized mature areas and
rolling areas to improve utilization of exploration resources. The
Company made six new discoveries and drilled 21 successful
appraisal wells. In offshore China, the Company made a mid-sized light
crude oil discovery in Eastern South
China Sea, namely Liuhua 20-2, which is expected to
facilitate the joint development with the adjacent Liuhua 16-2 and
Liuhua 23-1 oil and gas structures. The Company also made a
mid-sized discovery in Bohai, namely Penglai 20-2.
Benefiting from the lowering costs and enhancing efficiency
program, of the seven projects scheduled to come on stream in 2015,
the Jinzhou 9-3 oilfield comprehensive adjustment, Bozhong 28/34
oilfields comprehensive adjustment, Kenli 10-1 oilfield, Dongfang
1-1 gas field phase one adjustment and Luda 10-1 oilfield
comprehensive adjustment have successfully commenced production,
and several came on stream ahead of schedule and under budget. The
other two new projects are progressing smoothly.
During the period, the Company changed the performance
evaluation system to motivate subsidiaries to implement more
stringent cost control mechanisms, optimized management mechanisms
and conducted special programs to reduce operation costs, and fully
utilized the market mechanism to lower the costs of services and
supplies. These initiatives allowed the Company to effectively
control its costs. The Company's all-in cost was US$41.24 per barrel of oil equivalent (BOE), down
4.5% year-on-year (yoy), while operating cost was US$9.60 per BOE, down 18.5% yoy.
For the first half of the year, the Company's total net oil and
gas production reached 240.1 million BOE, up 13.5% yoy, primarily
due to the production contribution from newly commenced projects in
Bohai and the Eastern South China Sea. Production from offshore
China rose by 19.1% yoy to 156.3
million BOE and production from overseas was 83.9 million BOE, up
4.4% yoy. The Company's 2015 full year production target of 475-495
million BOE remains unchanged.
The Company's average realized oil price was US$57.53 per barrel in the first half of 2015,
representing a decline of 45.9% yoy, while the average realized
natural gas price rose by 1.7% yoy to US$6.55 per thousand cubic feet. Due to the
substantial decline in realized oil prices, the Company's oil and
gas sales revenue were RMB77.03
billion, representing a decline of 34.2% yoy, and net profit
fell 56.1% yoy to RMB14.73
billion.
Mr. Yang Hua, Chairman of the
Company, said, "In view of the challenges from the external
environment, staff at all levels of the Company worked hand in
hand, made further progress in our focus on the "Year of Quality
and Efficiency" program and achieved favourable results. We will
fortify our confidence about the future, remain steadfast in
implementing our established strategy, and pursue high-quality,
effective and sustainable development."
Mr. Li Fanrong, CEO of the
Company, said, "In the first half of 2015, the Company made
tremendous efforts to reduce costs and enhance efficiency. As a
result of these initiatives, our exploration, development and
production activities have maintained stable growth, and major
financial indicators remained healthy. In the second half of the
year, we will effectively execute the year's operational strategy
under the guidance of the Company's growth strategy, proactively
deal with the adverse environment of low oil prices and ensure that
all annual production and operation targets for the year are
achieved."
In the first half of the year, the Company's basic earnings per
share reached RMB0.33. The Board has
declared an interim dividend of HK$0.25 per share (tax inclusive).
Notes to Editors:
More information about the Company is available at
http://www.cnoocltd.com.
This press release includes "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, including statements regarding expected future
events, business prospectus or financial results. The words
"expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify such
forward-looking statements. These statements are based on
assumptions and analyses made by the Company in light of its
experience and its perception of historical trends, current
conditions and expected future developments, as well as other
factors the Company believes are appropriate under the
circumstances. However, whether actual results and developments
will meet the expectations and predictions of the Company depends
on a number of risks and uncertainties which could cause the actual
results, performance and financial condition to differ materially
from the Company's expectations, including but not limited to those
associated with fluctuations in crude oil and natural gas prices,
the exploration or development activities, the capital expenditure
requirements, the business strategy, whether the transactions
entered into by the Group can complete on schedule pursuant to
their terms and timetable or at all, the highly competitive nature
of the oil and natural gas industries, the foreign operations,
environmental liabilities and compliance requirements, and economic
and political conditions in the People's
Republic of China. For a description of these and other
risks and uncertainties, please see the documents the Company files
from time to time with the United States Securities and Exchange
Commission, including the 2014 Annual Report on Form 20-F filed on
22 April 2015.
Consequently, all of the forward-looking statements made in this
press release are qualified by these cautionary statements. The
Company cannot assure that the results or developments anticipated
will be realised or, even if substantially realised, that they will
have the expected effect on the Company, its business or
operations.
For further enquiries, please contact:
Ms. Michelle Zhang
Deputy Manager, Media / Public Relations
CNOOC Limited
Tel: +86-10-8452-6642
Fax: +86-10-8452-1441
E-mail: mr@cnooc.com.cn
Ms. Cathy Zhang
Hill+Knowlton Strategies Asia
Tel: +852-2894 6211
Fax:+852-2576 1990
E-mail: cathy.zhang@hkstrategies.com
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SOURCE CNOOC Limited