HONG KONG, March 23, 2017 /CNW/ -- CNOOC Limited (the
"Company", SEHK: 00883, NYSE: CEO, TSX: CNU) today announced its
2016 annual results for the year ended December 31, 2016.
In 2016, the Company has overcome many difficulties and made
smooth progress in exploration, development and production, and
continued to maintain a reasonable ratio of exploration investment,
and ensured the mid to long-term sustainable development with a
higher workload. During the year, the Company made 14 commercial
discoveries and successfully appraised 25 oil and gas structures.
Oil and gas reserves made by independent new discoveries in
offshore China continued to
maintain at a higher level. New breakthroughs have also been made
in explorations in new areas, while multiple overseas large-scale
high-quality projects are progressing smoothly. Reserve replacement
ratio excluding economic revisions was 145% for the year despite
the low oil prices. As at the end of 2016, the Company's net proved
reserves were approximately 3.88 billion barrels of oil equivalent
(BOE).
The Company successfully met its annual oil and gas production
target upon further Capex cuts, with net oil and gas production
reaching 476.9 million BOE. The four projects planned for 2016 have
commenced production smoothly during the year, including Kenli 10-4
oilfield, Panyu 11-5 oilfield, Weizhou 6-9/6-10 comprehensive
adjustment project and Enping 18-1 oilfield.
For the last three years, the Company has unrelentingly pursued
a management concept centered around cost control and improved
efficiency, and formulated a workable and development plan. In
2016, the Company paid further attention to quality and efficiency
and struck a balance between the Company's short-term survival and
long-term development. It pursued growth with value, in order to
make the production output more efficient. As a result, its ability
for sustainable development has improved overall.
In 2016, the Company's average realized oil price was
US$41.40 per barrel, representing a
decline of 19.3% year-over-year (yoy), while the average realized
natural gas price was US$5.46 per
thousand cubic feet, representing a decline of 14.6% yoy. In
addition, the Company's oil and gas sales revenue was RMB121.3 billion, representing a decline of 17.2%
yoy. In the face of oil price fluctuations -- which are beyond
the Company's control -- the Company has consistently put
efficiency enhancement as the key in dealing with industry cycles.
In 2016, the Company's all-in cost was US$34.67 per BOE, a decrease of 12.9% yoy. The
net profit was RMB637 million.
During the year, the Company's capital expenditures were
RMB49.0 billion, representing a
decrease of 26.3% yoy.
In 2016, the Company's basic earnings per share was RMB 0.01. The Board of Directors have proposed a
year-end dividend of HK$0.23 per
share (tax inclusive).
Mr. Yang Hua, Chairman and CEO of
CNOOC Limited, said, "In 2016, the Company has maintained a strong
cost competitiveness despite low oil prices and sluggish global
economic growth. The Company unrelentingly pursued a management
concept centered around cost control and improved efficiency,
maintained prudent financial policies, and realized sound and
steady growth in every business. Looking ahead, the Company will
continue to adhere to a value-driven approach and enhance the core
competitiveness of the core oil and gas business, so as to secure
the long and sustainable development of the Company."
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 Annual Report on Form 20-F filed in April
of the latest fiscal year.
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:
Mr. Yan Cao
Deputy General Manager, Investor Relations Department
CNOOC Limited
Tel: +86-10-8452-1417
Fax: +86-10-8452-1441
E-mail: caoyan@cnooc.com.cn
Ms. Iris Wong
Hill+Knowlton Strategies Asia
Tel: +852 2894 6263
Fax: +852-2576 1990
E-mail: HL.Wong@hkstrategies.com
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SOURCE CNOOC Limited