Chinese oil giant CNOOC posts record third-quarter profit as production surges

Despite lower global oil prices, Chinese state-owned oil and gas giant CNOOC reported its highest third-quarter profit on Monday amid record oil and gas production.

CNOOC, which specializes in developing offshore oil and gas fields in China and abroad, recorded net profit of $5.2 billion (36.93 billion Chinese yuan) for the third quarter, up 9% from the same period in 2023.

CNOOC specializes in oil and gas exploration and production, and unlike other major Chinese state-owned oil giants such as PetroChina, it has far less exposure to the refining sector, which has weighed on its profits this year amid weak refining margins and demand for oil. fuel. .

CNOOC’s net income growth was primarily driven by record high production levels and cost controls, which more than offset lower oil prices in international markets, reflecting weaker oil demand in China than previously expected.

In the first nine months of the year, CNOOC increased net profit by 19.5% and revenue by 6.3%, despite lower Brent crude prices, which averaged 8% lower in the third quarter than a year earlier.

During the first three quarters of the year, “at the same international oil prices, our net production and net profit increased significantly, reaching historical highs for the same periods in history,” CNOOC said.

Net production rose 8.5% year-on-year to 542.1 million barrels of oil equivalent (boe), with China’s production up 6.8% to 369.2 million boe, driven primarily by oil and gas fields such as Bozhong 19. -6 and Enping 20-4.

CNOOC’s net overseas production increased 12.2% to 172.9 million barrels of oil equivalent due to ramp-up at the Payara project in Guyana, where CNOOC is partnering with ExxonMobil and Hess to develop the prolific Stabroek block.

CNOOC is contributing to the Chinese government’s plan to increase domestic oil and gas production. Between January and September, the company launched production at seven new projects offshore China.

Tsvetana Paraskova for Oilprice.com

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