Ladies and gentlemen, welcome to CNOOC Limited's 2026 Third Quarter Announcement. Please allow me to introduce CNOOC management representatives joining us today. Mr. He Tao, responsible for investor relations. Ms. Ren Min, responsible for accounting and finance. Mr. Gao Yangdong, in charge of exploration and development. Today's announcement will be divided into two parts. First, Mr. He will walk us through the company's operational highlights and financial performance for the third quarter. We will then open the floor to a Q&A session, which will be supported by consecutive interpretation. I will now turn the call over to Mr. He, please.
Thank you, moderator. Honorable investors, media friends, good afternoon. Welcome to CNOOC's 2026 Third Quarter Earnings Conference Call. I will now present the company's key third quarter results. In the first three quarters of 2026, the company efficiently coordinated all aspects of operations and achieved positive results.
During the period, net oil and gas production reached 537 million BOEs, up 2.7% year-on-year. A total of five new discoveries were made, and 23 oil and gas-bearing structures were successfully evaluated, further strengthening the resource base. Nine new projects were successfully brought online. Production capacity expansion proceeded in an orderly manner. Meanwhile, safety and environmental protection situation remained generally stable and under control. Financial highlights. Oil and gas sales revenue reached CNY 305 billion, up 9.5% year-on-year. All-in costs were controlled at $37.57 per BOE. Net income, CNY 171.9 billion, up 16.8% year-on-year. CapEx, CNY 29.9 billion. In terms of exploration, during the first three quarters, the company made five new discoveries and successfully evaluated 23 oil and gas-bearing structures.
In China, Bozhong 8-3 South and Huizhou 21-8 fields continue to expand their reserves and are expected to become large to medium-sized oil and gas fields. Caofeidian 22-3 demonstrates a promising exploration prospect in the lithologic zones within the northern Ludong area of Chengbei, further solidifying the reserve base. Overseas, the company is methodically advancing seismic data acquisition for newly acquired exploration blocks in Iraq and Kazakhstan, with progress reaching 76% and 33% respectively. In Q3, the company made one new discovery and successfully evaluated seven oil and gas-bearing structures. In terms of development, the company brought a total of nine new projects online in the first three quarters, including four new projects in Q3. Among the new projects that have come online, the Bozhong 26-6 oil field continues to expand production. The phase two development project has a peak daily output of about 30,000 BOEs.
By leveraging existing facilities and other measures, the project has achieved efficient development and significant cost savings. Once fully operational, this project will help boost production in Bohai Sea and enhance energy supply capacity for Beijing-Tianjin-Hebei region and Bohai Rim. The Panyu 10-4 oil field development project has a peak daily production of about 7,000 BOEs. Relying on intelligent systems, the project achieved fully automated oil production, processing, and transportation. It effectively improves crude oil recovery rates through large-scale water injection and significantly reduces carbon dioxide emissions by utilizing a power generation system that recovers heat from produced water. In terms of production volume during the first three quarters, we have 597 million BOEs of production, up 2.7% year-on-year, setting a new record high for the same period in history.
Net production in both China and overseas continued to grow, reaching 408.5 million BOEs and 185.1 million BOEs respectively. In China, growth was primarily driven by projects such as Kenli 10-2, while overseas growth was mainly driven by projects in Guyana and Brazil. In Q3, the company's production grew steadily, reaching 194.9 million BOEs. Now let's take a look at the performance of key financial indicators for the first three quarters. Our average realized oil price was $86.32 per barrel, up 26% year-on-year, which was generally in line with international oil price trends. Average realized natural gas price was $8.13 per 1,000 cubic feet, up 3.4% year-on-year. CapEx were executed as planned, totaling CNY 89.9 billion. In the first three quarters of this year, our all-in cost was $32.57.
The main reasons for this year-on-year change was the appreciation of RMB against USD, increased taxes resulting from rising oil price, and combined impact of production fluctuations across various oil fields. We adhered to low-cost strategy, firmly upheld the principle of maximizing output per unit of input, and continued to carry out intensive efforts to improve quality and enhance efficiency. Despite significant year-on-year increase in international oil price, we effectively controlled our all-in cost per barrel of oil during the first three quarters, which is $7.6, maintaining our cost competitive advantage. Based on our strong performance in the first three quarters, we are fully confident that we will achieve our full-year production and operational goals. That concludes my presentation. Thank you, investors and media friends.