The state-owned Chinese company that now controls Nexen says profit is down more than nine percent.
CNOOC says foreign operating costs jumped by a quarter because more of its production is coming from the oil sands.
It finalized the 15.1 billion dollar takeover of Nexen earlier this year, and also owns a stake in MEG Energy.
It also says exploration costs were up 73 percent this past year.
CEO Li Fanrong says despite the cost, buying Nexen was an important milestone for the company.
March 22, 2013
