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UPDATE 1-CNOOC Q1 revenue sinks 30.7 pct on weak oil; output up 5 pct

Published 2016-04-28, 07:02 a/m
UPDATE 1-CNOOC Q1 revenue sinks 30.7 pct on weak oil; output up 5 pct
0883
-
LCO
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* Net production up as two new oilfields come online
* But CNOOC keeps 2016 output target at 470-485 million boe
* Says no significant oil price rise seen due to
fundamentals

(Adds details of new fields on line; maintain 2016 output
target)
By Chen Aizhu
BEIJING, April 28 (Reuters) - CNOOC Ltd 0883.HK , China's
offshore oil and gas specialist, reported a 30.7 percent plunge
in first-quarter revenue as global crude prices sank to a more
than 12-year low, but delivered a 5-percent growth in production
over the period.
CNOOC's total net production rose 5.1 percent over the
year-ago period to 124.3 million barrels of oil equivalent
(boe), as two new oilfields came on stream, the company said in
a filing with the Hong Kong stock exchange.
CNOOC, however, said it was maintaining its 2016 output
target at 470-485 million boe, versus 495.7 million boe in 2015.
The company reported unaudited oil and gas sales revenue of
24.64 billion yuan ($3.80 billion) for the first quarter, down
30.7 percent from a year ago as realised oil prices fell 39.1
percent to $32.54 per barrel.
Brent crude futures LCOc1 hit $27.10 per barrel in January
- the weakest since late 2003. While prices started bottoming
out since March, concerns remain about the sustainability of the
rally given a persistent global supply overhang.
"Oil prices are in the upward channel but no significant
increase seen due to market fundamentals," Chief Financial
Officer Zhong Hua told press.
The two new fields that the company has started up are Kenli
10-4 in the Bohai Bay off north China and Panyu 11-5 in the
eastern part of South China sea.
CNOOC has previously said that it planned to start a total
of four fields this year, including two more in the South China
Sea. All the four fields are fully owned by the firm.
The company said it had managed to cut capital expenditure
by 39 percent in the first three months versus a year ago to 9.7
billion yuan, putting it on track to cap its expenses for the
whole year at under 60 billion yuan.
In January, CNOOC had said it would prioritise offshore
Chinese blocks this year, while targeting premium quality blocks
and conventional assets in overseas explorations.
Last month, CNOOC reported a 66 percent plunge in net
profits to 20.25 billion yuan for 2015.
($1 = 6.4784 Chinese yuan renminbi)

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