HONG KONG (Yosefardi) – CNOOC Limited’s net production of oil and gas reached 211.6 million barrel oil equivalent (boe) in the first half of this year, representing an increase of 6.8% year over year.
Production volume in offshore China remained stable while production overseas continued to grow. In particular, the Long Lake project in Canada, the Eagle Ford project in the U.S. and the Missan oilfields in Iraq provided considerable support to the Company’s production growth.
In the area of exploration, eight new discoveries and 20 successful appraisal wells were made in offshore China.
Regarding the Company’s financial performance, oil and gas sales for the first half of the year reached RMB117.10 billion, representing an increase of 5.7% year over year. The increase was primarily attributable to the production growth and higher realized oil and gas prices.
In connection with the Tangguh LNG Project in Indonesia, the company’s maximum guarantee cap of loan decreased to approximately US$164,888,000, with the prepayment of portion of bank loans on 31 January 2014.
CNOOC, through its subsidiary, continues to hold a 13.9% interest in the Tangguh LNG Project.
In addition, a letter of credit agreement was signed between the company and Talisman with execution of the aforesaid agreement.
Accordingly, Talisman has delivered valid and unexpired standby letters of credit with the amount of US$120 million to the company (as the beneficiary) as a counter-guarantee to offset the exposure of the Company’s guarantee for the aforesaid interest of 3.05% in respect of the Tangguh LNG Project financing.
With the prepayment of portion of bank loans on 31 January 2014, the amount of the standby letters of credit decreased to US$30 million.