China CNOOC 2024's net profit increases 11% on record production
CNOOC Ltd., a state-owned energy company in China, posted an increase of 11.4% on a record production in 2024 despite lower oil prices. The firm is continuing to focus on increasing its reserves and production.
In a filing on Thursday to the Hong Kong Stock Exchange, offshore oil and natural gas specialist reported net profit of 18.99 billion dollars. Sinopec Corp, a domestic rival, reported a 16.8% drop in net income to 50.3 billion yuan.
CNOOC achieved its high-end target by increasing oil and gas production 7.2%, to 726.8 millions barrels of oil equal (boe).
The company's total production costs have remained low, at $28.52 per boe. This is compared to $28.83 by 2023.
The capital expenditures totaled 130.2 billion yuan in 2018, up from 128 billion yuan in 2023.
As of the end of 2024, proven reserves totaled 7.27 billion BOE and the reserve replacement rate was 167%. The reserve life was set at 10 years.
"Reserves form the foundation of our development." The company stated that it adhered to a philosophy of value-driven oil and gas exploration, focusing on large and medium-sized fields.
CNOOC is a major contributor to China’s oil production, as the state-owned companies are tackling more difficult and expensive resources like shale to combat a sharp decline in mature basins.
The company has maintained its focus on the development of natural gas. This includes major projects like the phase-2 deepsea Shenhai-1 project in the South China Sea.
The company has made 10 discoveries of oil and gas, including the deepwater Lingshui gas field 36-1 in the South China Sea.
(source: Reuters)
