Cnooc 3Q revenue up on higher oil and gas production growth

10/24/2012

Cnooc 3Q revenue up on higher oil and gas production growth

BY YVONNE LEE 

HONG KONG -- Cnooc has raised its 2012 net oil and gas output target after the Chinese state-controlled oil giant reported a 5.2% increase in third-quarter revenue on the back of higher oil and gas production growth.

China's largest offshore oil and gas producer by capacity said revenue for the three months ended Sept. 30 rose to $7.73 billion. The company provides only net profit figures for the first half and full year.

Total net oil and gas output rose 8.5% to 87.8 million boe from 80.9 million, thanks to stronger contributions from domestic and overseas projects. The Beijing-based company said it expects to produce 335 million-345 million boe in 2012, up from its previous target of 330 million-340 million. The average selling price of the company's crude oil in the third quarter fell 6.5% to $104.74 a barrel.

Analysts are worried about the fate of the Beijing-based company's bid to acquire Canada-based Nexen Inc. for $15.1 billion following the rejection by the Canadian government over the weekend of a $5.21 billion bid by Malaysia's national oil company to acquire Canadian natural-gas producer Progress Energy Resources.

The Cnooc-Nexen deal, on which Canada could rule as early as mid-November, is widely seen as Beijing's most ambitious effort to test its reception in the booming North American oil patch. Nexen is one of Canada's largest independent energy producers, with operations or assets in Canada, the U.S. Gulf of Mexico and the North Sea.

Dow Jones Newswires

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