Spills Put the Chills on CNOOC’s Q1

• Posted by Danny
• on April 24th, 2012

Oil and gas sales climbed a modest 3.7%, but spills hampered its largest oilfield’s output.

 

Ranked #2 in the BeanScreen, China’s big oiler CNOOC ($CEO) released its unaudited Q1 results this morning.

Some of the details from Reuters:

“CNOOC Ltd reported a 6.3 percent drop in crude oil and gas output in the first quarter after a spill shut its biggest oilfield last year, as the top Chinese offshore oil producer struggles to deliver production growth for this year.

Production totalled 79.8 million barrels of oil equivalent (boe) in the first three months, compared with 85.2 million boe a year earlier….”

 …

“CNOOC Chief Executive Officer Yang Hua told Reuters that the company, which made five new discoveries and five successful appraisal wells offshore China in the first quarter, was confident of hitting its production target set for this year.

The company aims to produce 330 million to 340 million boe this year — little changed from 331.8 million boe in 2011… It targets compound annual output growth of 6 to 10 percent in the five years through 2015, partly by focusing on unconventional resources including oil sands and shale gas.”

CEO also ramped up capex by more than 58% YoY, so they’re obviously getting serious about cranking up production. That’s a good thing because increased volume will be needed to keep up with the rising costs of “its exposure to deepwater and unconventional assets.”

 

 

source:  CNOOC Q1 output falls 6.3 pct after oil spills – Reuters

disclosure:  we currently own shares in CEO

 

 

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