SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
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REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For April 29, 2004
CNOOC Limited
(Translation of registrant's name into English)
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65th Floor
Bank of China Tower
One Garden Road
Central, Hong Kong
(Address of principal executive offices)
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(Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F)
Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
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(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A.)
Company Press Release
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CNOOC Limited Reported Offshore China Production Growth for Q1
(Hong Kong, 29 April 2004) CNOOC Limited (the "Company" or "CNOOC Ltd."; NYSE
"CEO", SEHK "883") today reported a 7.2% increase in oil and gas production
offshore China in the first quarter of 2004 as compared to the same period
last year, reaching 314,382 barrels of oil equivalent (boe) per day. Crude oil
and liquids production was 273,054 barrels per day and natural gas production
was 237 million cubic feet per day. The increase was largely due to an 11.8%
increase in crude oil and liquids production in the Eastern South China Sea
and a 98.1% increase in natural gas production in the Western South China Sea.
In the first quarter of 2004, overseas assets recorded a total working
interest production of 9.1 mmboe and EBITDE of RMB627.8 mm (US$75.8 mm),
stronger than what was expected. Reported net entitlement production for the
Company was 362,672 barrels of oil equivalent (boe) per day. Crude oil and
liquids production and natural gas production were 306,980 boe per day and 323
mmcf per day, respectively.
Total unaudited revenues were RMB7.78 billion (US$940.2 million) for the first
quarter of 2004, representing a 3.8% increase from the first quarter of 2003.
The revenue growth was a result of higher production volume, which was
partially offset by the slight decrease in realized oil and gas prices. The
average realized oil and gas prices for the first quarter were US$29.79 per
barrel and US$2.8 per thousand cubic feet, respectively. "This quarter's
production growth offshore China was encouraging. The key value driver for
overseas operations, cash flow, performed better than expected. We had a good
start," commented Mr. Fu Chengyu, Chairman and Chief Executive Officer, "We
are however not relaxing."
"Offshore China costs were under effective control in the first quarter of
2004. We will continue to manage our costs closely. Production offshore China
is back-loaded this year, some costs components are expected to increase as
well," said Mark Qiu, Chief Financial Officer.
WZ 12-1N came on stream earlier this year with an estimated peak production of
14,400 boe per day. CNOOC Limited confirmed a number of discoveries in Bohai
Bay. "It was another solid quarter, all 13 major development projects are
progressing on track. We expect to meet our key operating targets for the
year," commented Mr. Zhou Shouwei, President of the Company.
In February, the Company acquired additional equity interest in the Tangguh
LNG Project in Indonesia. As a result, CNOOC's stake in the project increased
from 12.5% to 16.96%.
First Quarter and Year-to-Date Production Summary
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2003 2004
Crude Oil & Liquids (b/d) Q1 YTD Q1 YTD
Bohai Bay 125,679 125,679 129,530 129,530
Western South China Sea 67,072 67,072 61,279 61,279
Eastern South China Sea 71,365 71,365 79,801 79,801
East China Sea 2,718 2,718 2,444 2,444
Overseas 41,944 41,944 33,926 33,926
Subtotal (b/d) 308,777 308,777 306,980 306,980
Natural Gas (mmcf/d)
Bohai Bay 42 42 45 45
Western South China Sea 87 87 173 173
Eastern South China Sea - - - -
East China Sea 15 15 19 19
Overseas 97 97 86 86
Subtotal (mmcf/d) 242 242 323 323
Total Production (boe/d) 351,378 351,378 362,672 362,672
First Quarter and Year-to-Date Revenue and Expenditure (Unaudited)
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RMB millions US$ millions(1)
2003 2004 2003 2004
Q1 YTD Q1 YTD Q1 YTD Q1 YTD
Sales Revenue
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Crude oil and liquids 6,966.0 6,966.0 7,094.8 7,094.8 841.6 841.6 857.2 857.2
Natural gas 487.4 487.4 619.9 619.9 58.9 58.9 74.9 74.9
Marketing Revenue, net 16.4 16.4 34.5 34.5 2.0 2.0 4.2 4.2
Others 29.4 29.4 32.5 32.5 3.6 3.6 3.9 3.9
Total 7,499.2 7,499.2 7,781.8 7,781.8 906.0 906.0 940.2 940.2
Capital Expenditures
Exploration 285.4 285.4 363.6 363.6 34.5 34.5 43.9 43.9
Development 1,116.5 1,116.5 1,804.8 1,804.8 134.9 134.9 218.0 218.0
Others 0.3 0.3 3.3 3.3 0.0 0.0 0.4 0.4
Total 1,402.1 1,402.1 2,171.7 2,171.7 169.4 169.4 262.4 262.4
(1) Converted to US dollars: RMB 8.2771 = US$1.00
Ends
Notes to Editors:
CNOOC LIMITED - BACKGROUND
Incorporated in Hong Kong in August 1999, CNOOC Limited (SEHK: 883; NYSE: CEO)
is the dominant producer of crude oil and natural gas offshore China. CNOOC
Limited is also one of the largest independent crude oil and gas exploration
and production companies in the
world.
As of December 31, 2003, its net proved reserves were 2.1 billion
barrels-of-oil equivalents and its net production averaged 356,729 BOE per
day.
CNOOC Limited is currently engaged in exploration, development and production
in four major areas offshore China, which cover Bohai Bay, Western South China
Sea, Eastern South China Sea and East China Sea. The Company is also one of
the largest offshore crude producers in Indonesia.
The Company has about 2,447 employees.
CNOOC LIMITED -RELATIONSHIP WITH ITS PARENT COMPANY
CNOOC Limited, incorporated in Hong Kong, is a 70.6% held subsidiary of China
National Offshore Oil Corporation ("CNOOC"). CNOOC Limited is the sole vehicle
through which CNOOC carries out oil and gas exploration, development,
production and selling activities offshore China and internationally.
CNOOC, the parent company, is involved in the administrative, research, and
services functions for the China offshore petroleum industry as well as other
mid- or downstream petroleum projects.
*** *** ***
This press release contains statements that are not historical facts,
including statements about beliefs and expectations of the directors of CNOOC
Limited (the "Company"). These forward-looking statements are based on current
plans, estimates and projections, and therefore you should not place undue
reliance on them. Forward-looking statements speak only as of the date they
are made, and the directors of the Company undertake no obligation to update
publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. You are
cautioned that a number of important factors could cause actual results to
differ materially from those contained in any forward-looking statement. Such
factors include, but are not limited to, changes in PRC economic, political
and social conditions as well as government policies.
*** *** ***
For further enquiries, please contact:
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Mr. Xiao Zongwei Ms Anne Lui/Ms. Maggie Chan/Ms. Carol Chan
CNOOC Limited Ketchum Newscan Public Relations
Tel: +86 10 8452 1646 Tel: 852-3141-8016/852-3141-8063/852-3141-8091
Fax: +86 10 8452 1648 Fax: 852-2510-8199
E-mail: xiaozw@cnooc.com.cn E-mail: anne.lui@knprhk.com
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carol.chan@knprhk.com
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maggie.chan@knprhk.com
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be issued on its behalf
by the undersigned, thereunto duly authorized.
CNOOC Limited
By: /s/ Cao Yunshi
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Name: Cao Yunshi
Title: Company Secretary
Dated: April 29, 2004