Key facts
- CNOOC reported a record first-half profit of 85.8 billion yuan ($12.9 billion), a 23.4% increase year-over-year.
- Oil and gas sales revenue rose 20% to 206.1 billion yuan.
- Net oil and gas production increased by 3.7% to a record 398.7 million barrels of oil equivalent.
- The average realized oil price increased by 23.6% to $85.49 per barrel.
- China's strategy to increase domestic oil and gas production is aimed at reducing exposure to imported energy, a move gaining urgency due to geopolitical disruptions.
China National Offshore Oil Corporation (CNOOC) has reported a record-breaking first half of the year, driven by increased domestic oil and gas production and higher global crude prices. The company's net profit attributable to shareholders surged by 23.4% to 85.8 billion yuan ($12.9 billion), with oil and gas sales revenue climbing 20% to 206.1 billion yuan.
The surge in profitability was significantly bolstered by a 23.6% rise in CNOOC's average realized oil price to $85.49 per barrel, while natural gas prices saw a modest 1.3% increase. Concurrently, the company achieved a record net oil and gas production of 398.7 million barrels of oil equivalent, a 3.7% increase from the previous year, with a substantial portion coming from its Chinese fields.
This performance aligns with Beijing's long-standing strategy to enhance domestic energy production and reduce reliance on imports, a goal that has gained critical importance following geopolitical disruptions, such as those affecting the Strait of Hormuz. CNOOC has been actively developing its offshore fields, including the recent full production start at the Kenli 10-2 development in the Bohai Sea. The company also reported making four new discoveries and appraising 16 oil- and gas-bearing structures, alongside adding exploration blocks in Brazil and Indonesia.
Despite an increase in all-in costs to $29.70 per barrel of oil equivalent, the realized oil prices provided ample margin. CNOOC reaffirmed its production targets for 2026 and its capital spending guidance, signaling continued investment and growth ambitions. The company's success translates into significant returns for its shareholders.