CNOOC Loses On Tar Sands Investment

HONG KONG - State-owned CNOOC, which made China's biggest-ever overseas energy acquisition last year, said Friday that annual profit fell 9.3 per cent because of higher costs for exploration and for operating in Canada's oil sands.

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Foreign operating expenses, in particular, jumped by a quarter because a higher proportion of production came from the Canada's tar sands, where costs to extract oil are significantly higher than conventional crude projects.