Canadian Manufacturing

Nexen output helps CNOOC to 8% profit growth

Beijing-based, state-owned CNOOC is China's main offshore energy producer

HONG KONG—China’s state-owned CNOOC says first half-profit rose eight per cent on higher oil and gas output after buying Canada’s Nexen.

Chairman Wang Yilin said the company is now focused on integrating Nexen and getting ready for a listing on the Toronto Stock Exchange.

The $15.1 billion purchase of Nexen, which closed in February, was China’s biggest-ever overseas energy acquisition.

It’s part of a broader trend of Chinese resource companies buying foreign firms to get better access to key commodities

CNOOC posted a 34.4 billion yuan ($5.6 billion) profit in the January-June period. Oil and gas sales rose 16 per cent to 110.8 billion yuan.

The Beijing-based company is China’s main offshore energy producer. It produced 198.1 million barrels of oil and gas in the first half, including 24.8 million from Nexen.

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