CNOOC posts 9.3 pct profit drop on higher costs

AP News
Posted: Mar 22, 2013 5:14 AM

HONG KONG (AP) — Chinese energy company CNOOC says profit last year fell 9.3 percent because of higher costs for exploration and for operating in Canada's oil sands.

CNOOC said Friday that profit fell to 63.7 billion yuan ($10.2 billion) in 2012 from 70.3 billion yuan the year before. Revenue climbed 3 percent to 247.6 billion yuan.

CNOOC is one of China's three major state-owned oil and gas producers. It bought Canada's Nexen last year in a $15 billion deal.

The Beijing-based company said oil and gas sales grew last year because of "stable growth" in production. But it suffered from higher expenses on exploring for new wells as well as higher costs to operate existing wells.

The company also said foreign operating expenses jumped 25 percent because of increased oil sands production.