CNOOC sees output rise after Nexen takeover

CNOOC Ltd, China.s dominant offshore oil and gas producer, posted a 7.9 percent gain in first-half net profit on higher output after buying Canada.s Nexen Inc.

Net income totaled 34.4 billion yuan (US$5.6 billion) in the first six months, up from 31.9 billion yuan a year earlier, the Hong Kong-listed company said yesterday. That beat the average forecast of 30.87 billion yuan of four analysts polled by Reuters.

Revenue gained 17 percent to 139 billion yuan as higher oil and gas output offset lower selling prices.

Oil and gas output jumped 23.1 percent to 198.1 million barrels of oil equivalent, including 24.8 million barrels contributed by Nexen. Without Nexen, the output increase was still high at 7.7 percent due to strong growth offshore China.

.We believe that production growth will continue to remain strong over the coming quarters given the 30 projects CNOOC has under construction,. Sanford C. Bernstein & Co analyst Neil Beveridge said.

CNOOC sealed the US$15.1 billion takeover of Nexen in February. Chief Executive Li Fanrong said CNOOC is applying to list on the Toronto Stock Exchange under a pledge it made to win Canadian approval for the Nexen deal.