China National Offshore Oil Co., Ltd. (hereinafter referred to as CNOOC, 00883.HK) announced its 2021 annual results on March 30, showing that its net proved reserves, net production and net profit all hit record highs last year. Among them, the annual net oil and gas production reached 573 million barrels of oil equivalent; the net profit was 70.3 billion yuan, a year-on-year increase of 181.7%; the main cost of oil per barrel was US$29.49, and the operating fee of oil per barrel was US$7.83, maintaining cost competitiveness.
The recovery of international oil prices is the main reason for the substantial growth in the performance of oil companies in general last year. Xie Weizhi, chief financial officer of CNOOC, introduced at the media conference of the performance release that the average realized oil price of the company last year was US$67.89/barrel, a year-on-year increase of 65.7%, and the average realized natural gas price was US$6.95/thousand cubic feet, a year-on-year increase of 12.6%. The annual oil and gas sales revenue was RMB 222.1 billion, a year-on-year increase of 59.1%.
He said that CNOOC has achieved effective cost control in the context of generally rising commodity prices. “If we compare the data in 2021 with the data of the past 10 years, the oil price in 2021 will be at the middle and low level of the range in the past 10 years, but thanks to the continuous increase in reserves and production, cost reduction and efficiency enhancement measures, the company’s main operating indicators are at a historical level. The best level. Our net profit at $70 a barrel Brent exceeds the record set in 2011 at $111 a barrel.”
In 2022, CNOOC’s planned capital expenditure is 90 billion to 100 billion yuan. Wang Dongjin, chairman of CNOOC, said that this is the highest annual capital investment in the company’s history, reflecting the efforts to increase oil and gas exploration and development, and this year’s oil and gas growth will still maintain a relatively large increase.
In addition, CNOOC’s production target for this year is 600-610 million barrels of oil equivalent; 13 new projects will be put into production this year; the reserve replacement rate is 130%. According to the plan, production will maintain rapid growth in the next three years, and the production target in 2024 is 680-690 million barrels of oil equivalent. The main sources of production growth include China’s Bohai Sea, China’s South China Sea and Guyana’s Stabroek block.
Recently, the impact of the Russian-Ukrainian conflict on the global oil and gas market continued to ferment. In the context of Western oil companies announcing that they will shrink their business in Russia, China’s oil companies have attracted much attention from the outside world.
CNOOC CEO Xu Keqiang told the news that the output target setting for this year was not affected by the situation in Russia and Ukraine. The reason is that, on the one hand, when the output target was set earlier this year, the conflict between Russia and Ukraine had not escalated. On the other hand, the situation in Russia and Ukraine is changing rapidly, but it is difficult to adjust the production target. “The composition of the production target includes the production of old oil fields, the production of adjusted wells and the construction of new production capacity, all of which require long-term investment. Therefore, the situation in Russia and Ukraine has not affected our normal production and operation, and this year’s output target will not be significantly adjusted. “
Russia-Ukraine conflict and Western sanctions against Russia have sharply increased uncertainty about the on-time commissioning of liquefied natural gas (LNG) projects under construction in Russia, especially the Arctic LNG 2 project. The project is located on the Gdan Peninsula in the Russian Arctic. It is the second large-scale LNG project developed by Novatek, the largest independent natural gas producer in Russia, after the Yamal LNG project in the remote polar regions. The total investment is expected to be US$21.3 billion. Three liquefaction production lines It is planned to be put into production from 2023 to 2026. The final investment decision of the project was made in September 2019. The shareholders other than Novatek (holding 60%) include France’s Total Energy (10%) and PetroChina (10%). , CNOOC (10%), Mitsui (5%) and Japan Oil, Gas, Metals and Mineral Resources Agency (5%).
Total Energy recently announced that in view of technology and The financial sanctions have caused uncertainty about the implementation capacity of the Arctic LNG 2 project currently under construction, and the company has decided not to provide any funding for the project.
Xu Keqiang responded to this According to the news, the changing situation in Russia and Ukraine will indeed have an impact on the next step of the Arctic LNG 2 project. We are maintaining close communication with our partners and making corresponding countermeasures as the situation changes.
Wang Dongjin said that Total and Japanese companies have recently announced adjustments in new investment, but they have not given up on the Arctic LNG 2 project, nor have they withdrawn. From the perspective of CNOOC, the project has maintained growth resilience and is currently I didn’t feel any problems in capital operation.
On the 30th, CNOOC’s A-share IPO made new progress. The website of the China Securities Regulatory Commission issued a message on the same day, approving CNOOC Ltd. Issue no more than 2,990,000,000 new shares (including new shares issued by exercising the over-allotment option).