CNOOC Limited, the owner of Nexen which is a 25% joint venture partner in the Stabroek Block offshore Guyana along with ExxonMobil and HESS, recently announced that for 2017 its reserves and profit improved significantly.
In announcing its performance for the year ended December 31, 2017, the Company said it significantly advanced work in exploration, development and production throughout last year.
“In offshore China, the Company delivered substantial exploration results and breakthroughs. Overseas exploration recorded significant success allowing the Company to further optimize its strategic overseas portfolio,” it said.
CNOOC said that during 2017, the Company made 19 commercial discoveries and successfully appraised 16 oil and gas structures. “In addition, reserve life improved significantly to 10.3 years, with the reserve replacement ratio reaching 305% for the year. At the end of 2017, the Company’s net proved reserves were approximately 4.84 billion barrels of oil equivalent (“BOE”), reaching a historic high,” CNOOC said.
According to the company, it outperformed its oil and gas production target for the year with net oil and gas production reaching 470.2 million BOE. The company noted too that new projects progressed smoothly “and all five projects planned at the beginning of the year successfully commenced production.”
The company said it focused on innovation to fuel quality and efficiency enhancements, and kn so doing achieved cost reductions for the fourth consecutive year. “In 2017, the Company’s all-in cost was US$32.54 per BOE, a decrease of 6.2% YoY. Net profit increased significantly to RMB24.7 billion; due primarily to higher international oil prices and improvements in cost control,” the company said, adding that during the year, it maintained a healthy financial position and had abundant free cash flow. The capital expenditures were RMB50.1 billion.
Mr. Yang Hua, Chairman of CNOOC Limited, said: “The Company continued efforts to enhance quality and efficiency through innovation, and maintained strong cost competitiveness. The Company increased the reserve life significantly and improved profit greatly. In the future, the Company will follow the established development strategy and continue to pursue value creation to bring greater returns to shareholders.”
In addition to the Stabroek Block offshore Guyana, CNOOC Nexen has operations along the East Coast of Canada and the West Coast of Ireland.