CNOOC Ltd, China's biggest offshore oil producer, yesterday posted a 3.7 percent gain in quarterly revenue on higher crude prices, despite lower output caused by the shutdown of its biggest field.

Oil and gas sales rose to 48.84 billion yuan (US$7.7 billion) in the first quarter of this year, helped by an increase of about 20 percent in realized crude prices, CNOOC said. The Hong Kong-listed company doesn't report quarterly earnings figures.

Oil and gas production fell 6.3 percent to 79.8 million barrels of oil equivalent in the first three months from a year earlier, it said yesterday.

The company hasn't won government approval to restart production in the Penglai 19-3 oilfield in Bohai Bay, which was closed after two oil spills in June. CNOOC owns 51 percent of Penglai 19-3.

The company has said it plans to produce 330 million to 340 million barrels this year, with the lower end being basically flat with last year's output.

Chief Financial Officer Zhong Hua said in a teleconference that CNOOC is confident of meeting the target, but it has no timetable to resume production at Penglai 19-3.

Sanford C. Bernstein analyst Neil Beveridge said: "We expect to restart in the coming months." He expects quarterly output in the fourth quarter to be 10 percent above levels in the first quarter to help CNOOC reach its 2012 target.

Chief Executive Li Fanrong said in a statement that the company has made a mid- to large-sized new oil discovery and successful appraised a large oilfield in Bohai

"I believe these achievements will strongly support our production growth target," Li added.

Source:shanghaidaily.com