The company’s net profit reached approximately $12.9 billion for the first half of the year, driven by a 23.6% increase in realized oil prices to $85.49 per barrel. This surge in revenue coincides with Beijing’s aggressive mandate to reduce reliance on foreign energy imports, a policy that gained critical urgency following supply disruptions linked to conflict in Iran.
CNOOC Rides Domestic Production Surge to Record Half-Year Profit
Geopolitical volatility in the Strait of Hormuz has transformed China’s domestic energy strategy from a long-term goal into an immediate financial windfall. CNOOC reported a 23.4% spike in net profit on Wednesday, hitting 85.8 billion yuan as the state-backed giant capitalized on higher crude prices and ramped-up offshore extraction.
Operational success at the Kenli 10-2 development in the Bohai Sea, which began full production in May, exemplifies the company’s domestic focus. The site currently delivers over 20,500 barrels per day. Beyond local waters, CNOOC expanded its global footprint by securing three new exploration blocks in Brazil and Indonesia. Despite all-in costs rising to $29.70 per barrel of oil equivalent, the firm’s margins remain robust. CNOOC reaffirmed its 2026 production targets of 780 million to 800 million barrels of oil equivalent, signaling that the push for energy security remains the primary driver of its capital expenditure strategy.
Comments (0)
No comments yet. Be the first!