Chinese state-owned oil and gas company CNOOC reported a significant 11.4% increase in net profit for 2024, driven by record production levels, which helped offset weaker energy commodity prices.
CNOOC, which focuses on offshore oil and gas development both in China and internationally, posted a net profit of $19 billion (137.9 billion Chinese yuan) for 2024. This marks an 11.4% rise compared to the previous year, with production reaching a record high.
The company’s net oil and gas production totaled 726.8 million barrels of oil equivalent (boe), reflecting a 7.2% increase from 2023.
In China, net oil and gas production rose by 5.6%, supported by the Bozhong 19-6 oilfield, which began production at the end of 2023, as well as other fields. Internationally, production surged by 10.8% in 2024, thanks to new projects such as the Paraya oilfield offshore Guyana.
CNOOC holds a 25% stake in an Exxon-led consortium developing significant offshore oil resources in Guyana.
Since 2013, CNOOC’s net production has increased by 77%, while the all-in cost has dropped by 37%, the company said.
Despite a drop in oil prices in 2024, CNOOC’s net profit still rose. The average price of Brent Crude oil last year was $79.90, down from $82.20 in 2023.
The company continues to explore for hydrocarbons in China, in line with government instructions to boost domestic production. By the end of 2024, CNOOC’s net proved reserves stood at 7.27 billion boe, a 7.2% increase from 2023, with the reserve life remaining stable at 10 years based on current production levels.
Earlier this week, Sinopec, another major Chinese state oil company, reported a 16.8% decline in its 2024 net profit, citing lower oil prices and the rise of electric vehicles.
Sinopec attributed the profit drop to fluctuating international crude oil prices, the growing adoption of new energy vehicles, and significantly lower profit margins.
Related Topics:
- Turkey Expands Crude Oil Imports, Reducing Dependence on Russia
- WTI Crude Oil Price Today(March 26)
- Brent Crude Oil Price Live Chart (March 26)