Production and Reserve Volumes Hit Another Record High - Major Operational Indicators Met Targets

 Production and Reserve Volumes Hit Another Record High - Major Operational  Indicators Met Targets  HONG KONG, March 28, 2014 /CNW/ - CNOOC Limited (the "Company", NYSE: CEO,  SEHK: 00883, TSX: CNU) today announced its annual results for the year ended  December 31, 2013.  In 2013, the Company continued to increase its investment in exploration.  Benefitting from the Company's cognitive innovation and technological  advancement, 18 new discoveries were made and 20 oil and gas structures were  successfully appraised by the Company. As at the end of 2013, the Company  owned net proved reserves of approximately 4.43 billion barrels of oil  equivalent ("BOE"). The reserve replacement ratio of the year amounted to 327%.  In 2013, the Company exceeded its production target set at the beginning of  the year. The net oil and gas production reached 411.7 million BOE,  representing a 20.2% increase year-over-year ("yoy"), with 60.8 million BOE  contributed by Nexen. During the year, a total of 7 new projects commenced  production in succession, and Liuhua 19-5 has also come online in early 2014.  In 2013, the Company's average realized oil price was US$104.60 per barrel,  representing a decrease of 5.3% yoy, and the Company's average realized gas  price was US$5.78 per thousand cubic feet, representing an increase of 0.2%  yoy. In addition, the Company's oil and gas sales revenue reached RMB226.45  billion, representing an increase of 16.3% yoy, and net profit amounted to  RMB56.46 billion.  During the period, the Company's all-in cost was US$45.02 per BOE,  representing an increase of 26.0% yoy, mainly attributable to the relatively  high cost of Nexen's assets and the new projects.  Including RMB15.67 billion of Nexen's spending, the Company's capital  expenditures reached RMB92.43 billion in 2013.  As for overseas development, with the successful completion of the acquisition  of Nexen in February 2013, the Company has embarked on a new phase of  international development. To date, the integration of the two entities has  progressed smoothly and the overall progress met the Company's targets. In  addition, the Company has successfully entered into the production sharing  contract for the Libra oil field located in the Santos Basin in Brazil. This  marks a significant milestone for the Company in the course of its strategic  entry into the ultra-deepwater field, which is in line with our philosophy of  expanding our global presence through partnership arrangements.  Mr. Li Fanrong, CEO of the Company, said, "In 2013, CNOOC Limited made steady  progress in all production and operational activities while stepping up the  pace of its international development. While working hard to achieve various  targets for the year 2014, we will maintain a long-term vision and seize the  right opportunities to fully promote the Company to a new phase of  development."  In 2013, our basic earnings per share reached RMB1.26. The Board of Directors  has proposed a year-end dividend of HK$0.32 per share (tax inclusive).  Mr. Wang Yilin, Chairman of CNOOC Limited, said, "In 2013, the Company  undertook various activities under its 'New Leap Forward' strategic roadmap,  achieving notable results and significant progress in exploration, production  as well as international growth. We will adhere to carrying out innovation and  reforms and seeking long-term progress in order to create further value for  our shareholders."  Notes to Editors:  More information about the Company is available at  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 Company  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 2012 Annual Report on Form 20-F  filed on April 24, 2013.  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.    SOURCE  CNOOC Limited  Ms. Michelle Zhang Deputy Manager, Media / Public Relations CNOOC Limited Tel:  +86-10-8452-6642 Fax: +86-10-8452-1441  Ms. Cathy Zhang Hill+Knowlton Strategies Asia Tel: +852-2894 6211 Fax:  +852-2576 1990  To view this news release in HTML formatting, please use the following URL:  CO: Nexen Inc. NI: OIL FIELD COS  
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