CNOOC Limited: Lay A Solid Foundation for Future Growth

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Mar 22, 2013, 04:39 ET

HONG KONG, March 22, 2013 /PRNewswire/ -- CNOOC Limited (the "Company", NYSE: CEO, SEHK: 00883) today announced its annual results for the 12 months ended December 31, 2012.

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In 2012, the Company made outstanding achievements in exploration activities with breakthroughs in shallow water and deepwater offshore China as well as overseas. Among a total of 21 new discoveries and 19 successful appraisals of oil and gas structures, Penglai 9-1, Dongfang13-2 and Qinhuangdao 29-2/29-2 East all have the potential to be developed into large sized oil and gas fields. The Company's reserve replacement ratio amounted to 188% during the year.

The projects that were planned to come online in 2012 all commenced production within the year, and Penglai 19-3 oilfield was given the green light in February, 2013 to gradually resume production. Having benefitted from the production contribution of the new oil and gas fields and good performance of the producing oil and gas fields, the Company's oil and gas production maintained a steady growth and reached 342.4 million barrels of oil equivalent ("BOE"), representing an increase of 3.2% year-over-year ("yoy"). The Company is fully confident to achieve its 2011 to 2015 production CAGR target.

In 2012, the Company's average realized oil price amounted to US$110.48 per barrel and its average realized natural gas price reached US$5.77 per thousand cubic feet, representing an increase of 0.7% and 12.0% yoy, respectively. The Company's oil and gas sales revenue reached RMB194.77 billion, up by 2.9% yoy, and the net profit was RMB 63.69 billion, a decrease of 9.3% yoy primarily caused by the increased tax and exploration expenses.

During the period, attributed to the factors including theimposition of the resource tax, the Company's all-in cost rose 16.8% yoy to US$35.73 per BOE.

In 2012, the Company's total capital expenditure reached approximately US$9.2 billion, up 43.1% yoy.

Strictly guided by the value-driven M&A strategy, CNOOC Limited announced the acquisition of Nexen Inc. on July 23, 2012 and successfully closed the transaction on February 26, 2013. Through the acquisition, an important platform has been established for our overseas development. The transaction would bring rich resources and diversified asset portfolio for the long term development of the Company. Moreover, the Company completed the acquisition of partial working interest in Exploration Areas 1, 2 and 3A in Uganda.

Mr. Li Fanrong, CEO of the Company commented, "In 2012, we made significant progresses in all aspects of our business under the guidance of our 'A New Leap Forward' blueprint and maintained a good performance. In 2013, the Company will remain committed to enhancing the capability for sustainable development while ensuring health, safety and environmental-friendly operations and endeavor to build a responsible international energy company."

In 2012, our basic earnings per share reached RMB1.43. The Board of Directors has proposed a year-end dividend of HK$0.32 per share (tax inclusive).

Mr. Wang Yilin, Chairman of the Company commented, "2012 was the inaugural year that we implemented our 'A New Leap Forward' strategy. In this year, we made outstanding achievements in exploration and overseas expansion through dedicated efforts of the whole company. We also successfully reached our major production and operation targets, adding more resource reserves for the future development of the Company and further diversified our asset portfolio."

Notes to Editors:

More information about the Company is available at http://www.cnoocltd.com.

This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analysis made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes reasonable under the circumstances. However, whether actual results and developments will meet the Company's expectations and predictions depends on a number of risks and uncertainties which could cause the actual results, performance and financial conditions to differ materially from the Company's expectations, including those associated with fluctuations in crude oil and natural gas prices, the exploration or development activities, the capital expenditure requirements, the business strategy, whether the transactions entered into by the Group can complete on schedule pursuant to its timetable or at all, the highly competitive nature of the oil and natural gas industries, the foreign operations, environmental liabilities and compliance requirements, and economic and political conditions in the People's Republic of China. For a description of these and other risks and uncertainties, please see the documents the Company has filed from time to time with the United States Securities and Exchange Commission, including 2011 Annual Report on Form 20-F filed on April 20, 2012.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realized or, even if substantially realized, that they will have the expected effect on the Company, its business or operations.

For further enquiries, please contact:

Ms. Michelle Zhang
Deputy Manager, Media / Public Relations
CNOOC Limited
Tel: +86-10-8452-6642
Fax: +86-10-8452-1441
E-mail: [email protected]

Ms. Angela Hui
Ketchum Newscan Public Relations Ltd
Tel: +852-3141-8091
Fax: +852-2510-8199
E-mail: [email protected]

SOURCE CNOOC Limited