CNOOC Ltd. (00883.HK) said its share of output in the early stage of its Liwan 3-1 natural gas venture with Husky Energy Inc. will be lower than expected because of the way exploration costs are accounted for, a company executive said Tuesday.
“We hold a 51 percent stake in Liwan and Husky holds the rest but the gas that is extracted is not distributed according to our respective shareholding,” chief financial officer Zhong Hua told reporters in Hong Kong.
CNOOC will cap capital expenditure at 120 billion yuan (US$19.24 billion), with first-quarter spending at 19.31 billion yuan, the company said in a regulatory filing.
In the first three months, CNOOC had total net production of 108.1 million barrels of oil, up 15.5 percent from the same period last year. It made five new discoveries and eight successful appraisal wells offshore in Chinese waters.
Oil and gas sales revenue was 59.15 billion yuan, up 6.9 percent in the three months to March from a year earlier, mainly due to increased oil and gas production.
Average realized gas price during the period climbed 9.3 percent to US$6.33 per 1,000 cubic feet, driven by higher prices for certain domestic customers and improved realized gas price of Nexen, a Canadian oil and gas company it acquired last year.
CNOOC’s average realized oil price fell 5.1 percent to US$104.63 per barrel on weaker Far East benchmark oil prices and softer Brent crude prices.
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