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    Cnooc's 2017 Profit Sharply Up

Summary

Chinese state Cnooc saw a significantly higher net profit for 2017 thanks largely to higher oil and gas prices, it said March 29.

by: Shardul Sharma

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Cnooc's 2017 Profit Sharply Up

Chinese state Cnooc saw a significantly higher net profit for 2017 thanks largely to higher oil and gas prices, it said March 29.

Its net profit last year was yuan 24.7bn ($3.9bn) versus yuan 637mn a year ago. Revenue jumped 27.2% on-year to yuan 186.39bn. In 2017, the company's average realised oil price was $52.65/b, representing an increase of 27.2% year on year. The average realised natural gas price was $5.84/’000 ft3, up 7% year on year.

Cnooc’s net proved reserves were about 4.84bn barrels of oil equivalent at the end of 2017, a historic high, the company said.

During the year, the company made 19 commercial discoveries and successfully appraised 16 oil and gas structures. In addition, reserve life improved significantly to 10.3 years, with the reserve replacement ratio reaching 305% for the year. The company outperformed its oil and gas production target for the year with net oil and gas production reaching 470.2mn boe.