Chinese oil and gas giant CNOOC announced a record third-quarter profit on Monday, driven by its highest-ever oil and gas production levels, despite a backdrop of lower global oil prices.
The state-owned company, which primarily engages in offshore oil and gas development domestically and internationally, reported a net profit of $5.2 billion (36.93 billion yuan) for Q3, marking a 9% increase compared to the same period in 2023.
Unlike other major Chinese oil companies like PetroChina, which face profit pressures from weak refining margins and fuel demand, CNOOC has minimal exposure to the refining sector. This focus on exploration and production contributed to its profit gains as record production levels and cost controls helped counterbalance weaker global oil prices, influenced by lower-than-expected Chinese demand.
For the first nine months of 2024, CNOOC achieved a 19.5% rise in net profit and a 6.3% increase in revenue, even though Brent crude prices averaged 8% lower in Q3 compared to last year.
“Our net production and profit have reached historic highs, despite similar international oil prices,” CNOOC stated, emphasizing record figures for the period.
Net production climbed 8.5% year-on-year to 542.1 million barrels of oil equivalent (boe). In China, production increased by 6.8% to 369.2 million boe, bolstered by output from fields like Bozhong 19-6 and Enping 20-4.
Overseas, CNOOC’s production grew by 12.2% to 172.9 million boe, driven by the Payara project in Guyana, where CNOOC collaborates with ExxonMobil and Hess on the Stabroek block.
CNOOC’s growth aligns with the Chinese government’s aim to enhance domestic oil and gas production. From January through September, the company launched production at seven new offshore projects in China.
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