CNOOC LIMITED 2016 Mid-Year Review August 24, 2016
Agenda Overview Operating Results and Highlights Financial Performance and Analysis Outlook 3
Overview Smooth progress on exploration, development and production Six new discoveries were made, success rate of independent exploration wells in offshore China reached 47-67% Net production was 241.5 million boe*, up 0.6% YoY…
Summary Results 1H 2016 1H 2015 change% Production (mm boe) 241.5 240.1 0.6% - Crude and liquids (mm bbls) 202.4 200.4 1.0% - Natural gas (bcf) 227.6 232.3 -2.0% Realized oil price (US/bbl) 37.70 57.53 -34.5% Realized gas price…
Operating Results and Highlights
Cost Control and Efficiency Enhancement - Strategy Strengthen our efforts on cost control and efficiency enhancement, reshape cost competitiveness Focus on return and put profitability on top priority Enhance the integration of…
Cost Control and Efficiency Enhancement - Measures Exploration: strengthen geological study, optimize exploration program and improve the operation efficiency Development and production: optimize ODP and conduct special control on…
Cost Control and Efficiency Enhancement - Achievements Reshaped cost competitiveness, both all-in cost and Opex decreased for the third consecutive year Maintained exploration workload while lowering expenses, 52% of planned…
Exploration Summary 40 30 1 8 20 29 26 10 0 Wildcat Appraisal (km) (km2) 4,460 9,409 694 3,403 2D Seismic 3D Seismic China - Independent China - PSC Overseas We maintained an intensive exploration program to support…
Exploration Breakthrough Successful appraisal of Kenli 16-1 Located in Laizhou Bay Sag in Bohai Appraisal well KL16-1-6 encountered oil pay zones with total thickness of 60 meters Bohai Drilled and completed at depth of 1,680…
Production () (mmboe) 1H production was 241.5 mmboe, up 0.6% YoY 331-341 Production from offshore China grew by 2.4% YoY, reaching 160.1 mmboe, mainly attributable to ramp-up production from new projects 240.1 241.5 Production…
Production Summary 1H 2016* 1H 2015* Crude and Natural Crude and Natural Total Total Liquids Gas Liquids Gas (mm bbls) (bcf) (mm boe) (mm bbls) (bcf) (mm boe) China Bohai 86.5 24.6 90.6 83.4 24.8 87.5 Western South China Sea…
New Projects in 2016 Expected Peak Production Working Project Location Status Startup (boe/d) Interests Kenli 10-4 oil field Bohai Commenced production First half 9,600 100% Eastern South Panyu 11-5 oil field Commenced production…
Health, Safety and Environmental Protection Health, safety and environmental protection are always our top priority. OSHA statistics maintained at good level in the first half. 1H 2016 1H 2015 Rate of Recordable Cases 0.11…
Financial Performance and Analysis
Key Financial Items - Consolidated (RMB mm) 1H 2016 1H 2015 Change% Revenue Oil and gas sales 55,083 77,034 -28.5% Marketing revenues 10,058 11,410 -11.8% Other income 1,691 1,145 47.7% Revenue subtotal 66,832 89,589 -25.4%…
Movement of Net Profit (RMB mm) 30,000 15.9% -2.2% -60.9% 11.1% 326 2,336 13.6% 20,000 1,628 12.6% 1,998 8,974 -2.1% 7.2% 1,849 1,062 -146.9% 310 10,000 14,733 21,641 -152.5% 0 -7,735 -0.6% 90 -10,000 Net profit…
Movement of Financial Position (RMB bn) Dec 31, 2015 Jun 30, 2016 Cash, cash equivalent and time deposits with 29.9 maturity over three 110.3 43.1 months 95.9 Other current Total assets mainly include: Assets RMB432.6 bn of PP&E…
Movement of Cash and Cash Equivalent (RMB mm) 50,000 40,000 25,948 30,000 32,526 410 1,824 2,252 20,000 2,980 15,467 8,848 28,026 10,000 11,867 - Primary source of cash was operating cash flow, and primary use was…
Capex (RMB bn)…
All-in Cost (US/boe) 50 41.24 40 3.91 1.80 34.86 1.93 2.43 30 1.85 1.26 24.02 20 21.90 10 9.60 7.42 0 1H2015 1H2016 Opex DD&A Dismantlement SG&A Taxes other than income tax All-in cost decreased by 15.5% YoY,…
Cost Analysis Opex (US/boe) Opex of US7.42/boe, down 22.7% YoY. 12 Opex in offshore China and overseas 9.60 both decreased due to effective cost 8 7.42 control. 4 0 1H2015 1H2016 DD&A (US/boe) 30 24.02 24 21.90 DD&A of…
Opex in Offshore China (US/boe) 9 7.79 6.26 6 Labour cost Well repairs Equipment lease 3 Maintainance and repairs Supply vessels Others* 0 1H2015 1H2016 *Others include fuel, oil/gas/water treatment, insurance,…
A Successful Case Bonan Operating Company Operates more than 10 producing fields located in Southern Bohai Promote regional development, and change the development of individual field to integrated development of multiple fields…
Interim Dividend 2016 interim dividend: HK0.12 per share (tax inclusive) Dividend yield of 4.0%(1) Interim dividend payment will be approximately RMB4.59 billion(2), representing about 5.3% of free cash at the end of July 2016…
Outlook
Operating Strategy Maintain prudent financial policy Continue to lower costs and increase efficiency through innovation in technology and management Ensure safe operation and strict compliance with regulations Focus on return by…
2016 Overview 2016 Capex no more than RMB60 billion Continue to reinforce cost control Maintain healthy financial position Production target of 470-485 mmboe, 4 new projects to come on stream in 2016 Maintain high standards on HSE…
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