Reuters reported that China top offshore oil and gas producer CNOOC Ltd produced 18.4% more oil and gas in the Q3 but concerns linger over its future production levels due to its lack of acquisitions since 2006.
CNOOC said higher contributions from new fields offset a disruption at an offshore gas field caused by a typhoon in September. But its total revenue fell 23.1% to CNY 23.8 billion due to the sharp fall in crude prices. This compares with a forecast by Sanford C Bernstein of CNY 21.6 billion one of the few analysts to estimate quarterly revenues for CNOOC.
CNOOC lack of acquisitions since 2006 has sparked concerns over its production growth, putting more pressure on it to secure more outbound deals such as the highly contested Jubilee oil field in Ghana.
CNOOC said in a statement that "The company major development projects progressed on track."
CNOOC overall oil and gas output rose to 647,382 barrels of oil equivalent in the July to September period. While benchmark US crude oil futures CLc1 bounced to USD 68 a barrel in the Q3 up from nearly USD 60 in the Q2 they are still down from USD 118 a year ago.
The company average oil selling price was 36.6% lower at USD 67.83 per barrel in the quarter.
