For the third quarter of the year, the Company achieved total net production of 117.7 million barrels of oil equivalent (“BOE”), representing a decrease of 7.7% year-on-year (“YoY”), mainly due to the decline of production volume in oil and gas fields and weak demand in the domestic downstream gas market.
During the period, the Company made one new discovery and drilled ten successful appraisal wells offshore China. During the third quarter, Weizhou 6-9/6-10 comprehensive adjustment project and Enping 18-1 oilfield commenced production. The four projects that were planned to come on stream in 2016 have all commenced production.
For the third quarter of the year, the unaudited oil and gas sales revenue of the Company reached approximately RMB30.75 billion, representing a decrease of 15.2% YoY. The Company’s average realized oil price decreased by 13.5% YoY to US$42.26 per barrel, while the average realized gas price was US$5.22 per thousand cubic feet, down 18.6% YoY.
To cope with the low oil price environment, the Company continued to lower costs, enhance efficiency and cut capital expenditure for the whole year. During the period, the Company’s capital expenditure amounted to approximately RMB11.67 billion, representing a decrease of 20.9% YoY.
Mr. Yang Hua, Chairman and CEO of the Company, said, “In view of the market challenges during the third quarter of the year, the Company endeavored to lower costs and enhance efficiency, as well as made proactive efforts in all fields. In addition, the Company is confident in meeting the full year target of its key operating indicators.”