Cnooc’s UK business posts £1bn pre-tax profit

A recovering oil price drove a boost to profits for Cnooc’s operations in the UK and Ireland in 2018.

Cnooc Petroleum Europe, formerly Nexen UK, has posted its full year accounts on Companies House, with pre-tax profits of £1bn, up from £767.6m in 2017.

Although production for the China-owned firm dropped in the year, from 100,000 barrels per day to 76,000, the higher realised oil price of $70.76 boosted performance, up from $52.91 the year before.

Revenues were £1.575bn, up from £1.48bn, while total comprehensive income was £628.5m, up from £450.5m.

Cnooc’s share of production at the Buzzard field, the largest producing asset in the UK, dropped from 62,800 barrels per day to 49,500, following a lengthy shutdown for the field at the end of the year.

After the reporting period, the firm also made the 250million barrel Glengorm discovery in January this year.

CNOOC’s other core assets include Golden Eagle and the Scott fields, as well as the Telford and Rochelle fields.

Between its operations in the UK and Ireland, Cnooc employs around 600 people offshore and in onshore administration roles.

Going forward, the firm said it will “actively assess opportunities including the acquisition of additional exploration and production acreage” in the UK North Sea.

Earlier this year the firm officially changed its name from Nexen to Cnooc International after being acquired by China National Offshore Oil Corporation (Cnooc) in February 2013 in a £9.4billion deal.

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