CNOOC production down 4 percent

Aug. 21, 2012 at 7:07 AM
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HONG KONG, Aug. 21 (UPI) -- Oil and natural gas production for China National Offshore Oil Corp was down more than 4 percent compared with last year, the company said.

CNOOC reported that net oil production reached 160.9 million barrels of oil equivalent, which represented a 4.6 percent decline year-on-year. The company said most of the decline in production was because of the shutdown at the Penglai oil field.

CNOOC in June reported a small release during an oil transfer at the field. Two leaks from Penglai 19-3, China's biggest offshore oilfield, released hundreds of barrels of crude oil into the water last year, resulting in marine pollution and environmental damage to a marine area of 2,400 square miles.

The company added that net income fell from $6.2 billion last year to $5 billion in the latest report.

CNOOC Chief Executive Office Li Fanrong said dismal forecasts for the global economy put downward pressure on international oil prices.

"In view of the critical external environment, we will continue to ensure good performance in the different areas of business of the company, strengthening our foundation and striving forward for future development," he said in a statement.

The company reported Monday that it made two new discoveries in the shallow waters of Liaodong Bay. The two plays encountered 130 feet and 484 feet of oil pay zones.

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