<article><p class="lead">China's state-owned CNOOC raised upstream output by around 5pc from a year earlier during July-September as it brought new domestic projects on line.</p><p>The offshore-focused company produced 1.43mn b/d of oil equivalent (boe/d) in the quarter, up by 5.1pc from the same period last year. Liquids output edged up by 3.3pc to 1.13mn b/d.</p><p>Production from CNOOC's domestic fields rose by 10.4pc to 963,000 boe/d, supported by start-ups at its Luda oil and Dongfang gas projects. The increase more than offset a 4.6pc drop in overseas production to 463,000 boe/d because of lower output at Egina in Nigeria and Canada's Long Lake oil sands project.</p><p>CNOOC produced above its full-year target levels in the latest period. The company <a href="https://direct.argusmedia.com/newsandanalysis/article/2100757">scaled back</a> its output and capital expenditure (capex) targets for this year after oil prices collapsed in late March. It is now targeting production of 1.38mn-1.41mn boe/d, down slightly from 1.42mn-1.45mn boe/d previously. Its 2020 capex target took a bigger cut, to 75bn-85bn yuan ($11bn-12.7bn) from Yn85bn-95bn previously.</p><p>CNOOC did not give a profit figure for the quarter. Revenue fell by 26.8pc from a year earlier to Yn35.55bn because of lower oil prices and exchange rate issues. It cut capex by 5.8pc to Yn18.4bn in the period as part of cost-control and efficiency measures.</p><p>CNOOC is China's third-largest oil company behind state-controlled PetroChina and Sinopec, which are both due to report quarterly results next week.</p><p class="bylines">By Kevin Foster</p></article>
