Cnooc’s profit rises as production expansion offsets weaker demand – BNN Bloomberg

(Bloomberg) — Cnooc Ltd. reported higher third-quarter profit after the company offset lower crude oil prices with increased production.

China’s largest offshore oil and gas driller said net profit rose to 36.9 billion yuan ($5.2 billion) from 33.9 billion yuan last year, according to a statement Monday. The increase came despite Brent crude prices averaging around $79 a barrel for the quarter, about 8% lower than the same period in 2023, and the drop was partly driven by weak demand in China.

Cnooc is focused primarily on mining and, unlike its larger competitors PetroChina Co. and Sinopec, has little exposure to China’s weakening refining sector. But international prices are heavily influenced by economic conditions in the world’s largest oil importer, which in turn has a major impact on the company’s profitability.

The state-owned firm is playing a prominent role in boosting output to meet Beijing’s energy security goals, a task that has become increasingly important as the geopolitical landscape becomes increasingly uncertain. Production in the third quarter rose to 179.6 million barrels of oil equivalent from 167.9 million barrels last year.

Cnooc and its parent accounted for more than 80% of China’s oil supply growth in the first half as the country develops underdeveloped offshore fields to cut import costs. The company also continues to pursue oil production overseas, winning four concessions in Brazil earlier this month.

But its overseas expansion has not been without controversy, and the Chinese firm is embroiled in a battle among Western oil companies over a rich field off the coast of Guyana.

(Updates with details from fourth paragraph)

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