Oil giant CNOOC loses $1.2B in H1

SHANGHAI: China’s main offshore oil and gas producer CNOOC will lose more than $1 billion in the low oil prices, it told shareholders

On the basis of a “preliminary assessment” it expects a net loss of 8.0 billion yuan ($1.2 billion) statement to the Hong Kong stock of 14.7 billion yuan in the same period last year.

It would be the company’s first half- year loss since it started trading on the Hong Kong market in 2000, Bloomberg News reported.

CNOOC cited a “further decline” in crude oil prices for the loss as well as provisions for oil sands assets in Canada, according to the statement Thursday, but gave no details.

CNOOC acquired Canada’s Nexen Energy in 2013 for $ 15 billion.

“CNOOC paid too much for Nexen’s oil sands assets, so they have to write down some of it as the current price leaves no chance for the expensive operations to - lyst with policy researcher North Square Blue Oak, told Bloomberg.

CNOOC stock was down 2.09 percent in Hong Kong near midday on Friday following the announcement.