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China's CNOOC says first-half net profit down 11 percent

China's CNOOC says first-half net profit down 11 percent

Chinese offshore oil producer CNOOC reported Wednesday that its first-half net profit fell 11 percent from year earlier on lower crude oil prices.
Net profit for the six months ending in June was 14.6 billion yuan (US$1.9 billion; euro1.4 billion), down from 16.3 billion yuan in the same period of 2006.
Revenues totaled 42.2 billion yuan (US$5.6 billion; euro4.1 billion), a decline from 48.3 billion yuan in the same period of last year.
The average price of CNOOC's crude oil fell 5.8 percent in the first half of the year from a year earlier to US$58.8 a barrel.
At the same time, the company's China offshore net oil and gas output was 74.6 million barrels of oil equivalent, down 0.3 percent from a year earlier.
CNOOC attributed that decline to maintenance shutdowns and lingering damage from storms last year.
Overall, the company said production had "exceeded expectations" and that seven new commercial discoveries promised to improve output going forward.
In June, CNOOC resumed production at its Liuhua oil field, a major field that was forced to shut down in May 2006 due to typhoon damage. The lack of any major typhoon damage this year was another positive factor.
"The outlook for production and operations is positive," said CNOOC's Chairman and CEO Fu Chengyu.
Like other major Chinese oil producers, CNOOC has been shopping abroad to help expand its resource base.
Nigeria's Akpo deep-water field, in which CNOOC owns a 45 percent stake, is due to begin production by the end of 2008 with a peak output forecast at 175,000 barrels of oil equivalent a day, Fu said.