HONG KONG: China National Offshore Oil Corporation (CNOOC), the mainland's largest offshore oil producer by output, said its first-quarter revenue tumbled 42 percent year-on-year to 13.95 billion yuan, following a slump in crude oil prices.

President Yang Hua yesterday told reporters during a conference call that the steep drop in revenue came after the average realized price of crude oil in the international market nosedived 53.2 percent year-on-year to $41.56 per barrel.

Revenue from sales of crude oil and liquids account for around 87 percent of total revenue.

Overall revenue skidded 45.6 percent year-on-year to 12.19 billion yuan.

Revenue from natural gas slipped 3.8 percent to 1.35 billion yuan, although the average realized natural gas prices rose 6.6 percent to $3.89 per thousand cubic feet.

Despite declines in realized prices, total daily net production in the first quarter jumped 15 percent to 556,860 barrels of oil equivalent, thanks to new production projects which came on stream last year.

CNOOC's production of crude oil and liquids also rose 19.7 percent to 468,535 barrels per day, while net gas production reached 563 million cubic feet per day.

Net overseas production rose 30.9 percent to 31,481 barrels per day, boosted by the increased output in Northwest Shelf project in Australia and OML 130 in Nigeria.

Yang said CNOOC expects its new project in Tangguh Indonesia, to start production in the second quarter this year.

CNOOC has a 14 percent interest in the Indonesian venture.

Earlier, CNOOC officials forecast a 15-18 percent increase in total output this year.

Yesterday, Yang said CNOOC has no plans to change its full-year production target despite the global economic downturn.

"We are confident of meeting our target of 225 million to 231 million barrels this year," Yang said.

He also said CNOOC expanded its capital expenditure in the first quarter by 23.1 percent year-on-year to 7.51 billion yuan.

He said expenditures on project developments jumped 37.9 percent to 5.62 billion yuan in the first quarter.

Yang said CNOOC made seven new offshore discoveries and drilled five new appraisal wells on the mainland during the first three months this year.

(HK Edition 04/30/2009 page4)