BEIJING: CNOOC Ltd, 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 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.
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