CHINA National Offshore Oil Corporation has recorded a first half net profit of RMB33.59 billion – down 2.3 per cent on the result recorded in the first half of 2013.

This came despite an increase in company revenues by 5.7% to RMB117.1 billion, due to higher oil and gas prices and increased production.

The company recorded total net oil and gas production of 211.6 million barrels of oil equivalent, up 6.8% year-on-year (yoy), with 36.3 million boe contributed by Nexen.

CNOOC made nine new discoveries and drilled 23 successful appraisal wells during the half.

Among them was Lingshui 17-2, discovered by “Haiyangshiyou 981”, which the company said was successfully tested and was expected to become the first large-sized deepwater gas field made by its independent exploration activities.

The Luda 16-3 South structure and Kenli 16-1 structure were expected to become a mid-sized discovery after appraisal, with the southern slope of Laizhou Bay Sag in Bohai also boasting good exploration potential.

The Kenli 3-2 oilfields, Panyu10-2/5/8 project and Wenchang 13-6 oilfield commenced production during the year while other projects were progressing accordingly.

Wenchang 13-6, which is located in the west of Pearl River Mouth basin with an average water depth of about 120 metres, is part of the Wenchang oilfields and shares the existing adjacent facilities for the development.

The main production facilities include one wellhead platform and 12 producing wells. There are currently five wells producing about 1,300 barrels per day.

CNOOC also worked to integrate the recently acquired Canadian company Nexen into its existing structures, saying it had met expectations in this regard.

The production efficiency of Buzzard oilfield in the UK North Sea was further enhanced, while production and operation of Long Lake oil sands project had achieved significant improvement.

CNOOC chief executive Li Fanrong said the company had pushed different areas of its business ahead during the half.

“Good progress was made in the production and operation and a healthy financial position was maintained,” he said.

“In the second half of the year, we will continue to work diligently to ensure that we meet our annual production and business targets.”