CNOOC sees oil and gas sales increase by 6.9pc thanks to Nexen acquisition

CNOOC, China's dominant offshore oil and gas producer, posted a 6.9 per cent year-on-year rise in unaudited oil and gas sales revenue to 59.15 billion yuan (HK$74 billion) for the year's first quarter.

The growth was driven by the acquisition in February last year of Canada's Nexen, whose assets are mainly in Europe and North America.

Total domestic first-quarter output was flat year on year at 67.1 million barrels of oil equivalent (boe). Overseas output grew 55.9 per cent to 41 million boe.

The average selling price of the firm's oil fell 5.1 per cent to US$104.63 a barrel, while that of gas rose 9.3 per cent to US$6.33 per thousand cubic feet thanks to pricing reform that resulted in higher mainland gas prices.

CNOOC has seven major projects due to start production this year, with total expected peak output of 227,000 boe a day. All but two of the projects are wholly owned. Its average output last year was 1.13 million barrels per day.