(CNOOC, 25.Aug.2022) — CNOOC Limited (SEHK: 00883, SSE: 600938) announced its 2022 interim results for the six months ended 30 June 2022.
During the period, the company focused on the main business sector of hydrocarbon exploration and development. It pressed ahead with the “three major programs”, namely, Reserves & Production Augmentation, Independent Technological Innovation and Green Energy Transition. It implemented the campaign of Quality and Efficiency Dual Upgrading. Solid progress had been made and the operating results reached the best level of the same period. On 21 April, the company successfully completed its first RMB share issuance and was listed on the main board of the Shanghai Stock Exchange. The IPO will broaden the financing channels for its sustainable development while adding high-quality investment target to China’s capital market.
In the first half of the year, the company carefully deployed exploration workloads and its resource base for sustainable development was further fortified. In offshore China, 2 middle-to-large sized discoveries, namely Bozhong 26-6 and Bozhong 19-2, were made and confirmed. In overseas, 5 new discoveries were made in Stabroek block in Guyana. The recoverable resources of Stabroek block have reached approximately 11 billion BOE. In terms of unconventional resources growth, new breakthrough was made in offshore shale oil exploration, and the fracturing experiment in onshore deep coalbed methane layers was successfully completed.
The company dedicated great efforts to increase oil and gas production, and net production hit a record high for the same period, reaching 304.8 million BOE, representing a year-on-year (YoY) increase of 9.6%. The decline rate of the producing oilfields in China was brought under effective control. Overseas, the net production of the projects exceeded the set goals. New projects such as Weizhou 12-8E oilfield development project and Liza Phase II in Guyana have been commissioned successfully. Other major projects under construction such as Enping, Lufeng and Kenli have progressed steadily.
The company vigorously enhanced the quality and efficiency of its operations, and effectively organized its production to seize the favorable time window of high oil prices, thereby recording highest net profit and revenue so far, highlighting the strong capability of the management. In the first half of the year, the oil and gas sales revenue reached RMB176.68bn, up by 75.6% YoY. The net profit attributable to equity shareholders of the company reached RMB 71.89bn, representing a significant increase of 115.7% YoY. The earnings per share was RMB1.57. Benefiting from effective cost control, all-in cost in the first half of 2022 was US$30.32 per BOE, operating cost was US$7.77 per BOE. The company’s capital expenditure amounted to approximately RMB 41.6 billion, increased by 15.4% YoY, providing a strong support for future reserves and production growth.
The company has always attached great importance to shareholder returns. The Board of Directors has decided to declare an interim dividend of HK$0.70 per share (tax inclusive), which hits a record high.
The company continued to make breakthroughs in technological innovation. After the launch of the “Shenhai-1” energy station last year, in the first half of this year, the company successfully installed “Haiji-1” jacket platform, the first deepwater jacket in Asia, independently designed and built. The first set of shallow-water subsea wellhead and Christmas tree and the first set of deep-water subsea wellhead and Christmas tree passed the sea trials, both independently developed by the company. The company strives to excavate hydrocarbon in a digital and intelligent way. The application of shore power at Qinhuangdao 32-6 oilfield helped to build it into the benchmark project of offshore “smart oilfields” and created a new model of “intelligent, safe and efficient” exploitation of offshore oil and gas resources.
The company steadily advances green development. Green electricity was utilized on a large scale on offshore platforms for the first time. It actively explored the new mode of offshore green and low-carbon industry, and jointly launched China’s first largescale offshore CCS/CCUS hub research project in Daya Bay. Levering its marine advantages, the company started the construction of Wenchang deep-sea floating wind farm demonstration project, utilizing domestic technologies.
In the first half of this year, the company continued to implement the normalized epidemic prevention measures. The production of the company remained safe and stable.
Mr. Wang Dongjin, Chairman of the company, said, “In the first half of 2022, the external environment was complicated. The company seized the favorable opportunities and made proactive moves to reach record-high operating results. We will pay close attention to the international situation and industry trends. We will continue to pursue a high-quality development, so that we can reach the goals we set at the year beginning and create more value for shareholders.”