Page 9 - AsianOil Week 43 2022

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CNOOC's Q3 profits leap 89% on

higher oil and gas prices

PERFORMANCE THIRD-QUARTER net profit at China’s main South China Sea.”
offshore oil producer CNOOC jumped by 89% It is the first deepwater find to be made in the
Higher prices and year on year to CNY36.9bn ($5.1bn) on the region. Addressing reporters, CNOOC CFO Xie
output growth were back of soaring oil and gas prices, the company Weizhi said the Baodao 21-1 gas deposit, as it is
behind the surge. reported last week. known, is still in the development planning stage
Revenue for the three-month period was up and that the company is yet to take a final invest-
54% at CNY89.2bn, supported also by a 8.8% ment decision (FID).
growth in production to 156.8mn barrels of oil The Norwegian press broke the story on
equivalent (boe). Domestic fields contributed October 17 that CNOOC was considering the
68% of this output, while the company’s over- sale of its oilfield interests in the UK North Sea
seas assets contributed 32%. CNOOC’s realised to Norway’s state-owned Equinor, estimating
oil price was up 36% on a year earlier at $95.8 the deal price at NOK20-30bn ($1.9-2.9bn).
per barrel, while gas prices grew 15% to $8.15 per CNOOC’s assets in the region include Buzzard,
1,000 cubic feet ($288 per 1,000 cubic metres). one of the area’s largest fields, as well as interests
Capital expenditure for the third quarter in Golden Eagle, Scott and Telford.
climbed almost 30% to CNY27.1bn, bringing Xie did not rule out this investment, but said
the total for the first nine months of the year to that the company would dismiss any bids that
CNY68.7bn, with the annual budget currently meant that the assets’ profitability would be
set at CNY90-100bn. less than the income generated under its own
Marking an important moment for operation.
CNOOC’s domestic exploration efforts, the “The company has consistently been opti-
company announced earlier this month the dis- mising global assets to better fit its technological
covery of a deepwater gas field in the sea south- edge as well as its management style,” Xie said.
east of Hainian Province, estimating its size at CNOOC’s Hong Kong-listed stock has risen
more than 50bn cubic metres. The company in value by 35% in the year so far, substantially
said it had “achieved the biggest breakthrough outperforming the benchmark Hang Seng index,
in the Songnan-Baodao Sag in more than half a which has fallen 34% over the same period,
century, and will lay a solid foundation for the reflecting higher oil and gas prices and the com-
construction of a trillion-dollar gas region in the pany’s production gains. ™

Week 43 31•October•2022 www. NEWSBASE .com P9