CNOOC posted a rise in third-quarter profit after the company offset lower crude oil prices with increased output.
China’s largest offshore oil and gas driller said net income rose to 36.9 billion yuan (S$6.8 billion), from 33.9 billion yuan last year, according to a statement on Monday (Oct 28). The increase came despite Brent crude averaging around US$79 a barrel over the quarter, about 8 per cent lower than the same period in 2023, a drop caused in part by weak demand in China.
Cnooc is geared mostly to extraction, and unlike its bigger rivals PetroChina and Sinopec has little exposure to China’s faltering refining sector. But international prices are heavily influenced by economic conditions in the world’s biggest oil importer, which in turn has a major bearing on the company’s profitability.
The state-owned firm has a prominent role in raising output to meet Beijing’s targets for energy security, a task that has taken on ever greater importance as the geopolitical landscape becomes more uncertain. Production in the third quarter rose to 179.6 million barrels of oil equivalent, from 167.9 million barrels last year.
In the first half, Cnooc and its parent contributed over 80 per cent of China’s oil supply growth as the nation taps underdeveloped offshore fields to cut its import bill. The company also continues to push for oil further afield, winning four concessions in Brazil earlier this month.
But its overseas expansion has not come without controversy, and the Chinese firm is embroiled in a fight between between western oil majors over a prolific discovery off the coast of Guyana. BLOOMBERG
