China’s Oil Giant CNOOC Books Record-High Profit as Output Jumps

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China’s state-held oil and gas giant CNOOC reported on Wednesday a record-high net profit for the first half of 2024, pushed up by an all-time high oil and gas production and rising oil prices.
CNOOC, which specializes in offshore oil and gas developments in China and internationally, booked a net profit of $11.18 billion (79.7 billion Chinese yuan) from January to June. This represented a 25% jump compared to the same period of 2023 and “the best level of the same period in history,” the company said.
CNOOC’s board also declared the highest interim dividend in its history of HK$0.74 per share, or US$0.095.
Record-high oil and gas production was the key driver of CNOOC’s record-high profit for the first half of the year. Net production rose by 9.3% year-over-year to 362.6 million barrels of oil equivalent (BOE)—“hitting a historic high,” CNOOC said.
The oil and gas giant continued to raise exploration activity, reserves, and production as directed by the Chinese authorities, which told the state energy giants a few years ago to boost domestic oil and gas production to bolster China’s energy security.
Earlier this month, CNOOC said that China’s authorities approved the proved gas in-place volumes of over 100 billion cubic meters in a new discovery in the western part of the South China Sea, which is the world’s first large ultra-shallow gas play in ultra-deepwater.
Similarly to CNOOC, another Chinese oil and gas giant, PetroChina, reported this week a record-high operating profit for the first half amid rising crude oil and natural gas production, which more than offset weak Chinese fuel demand.
“The Company achieved record high first half operating results for three consecutive years,” PetroChina said as it reported growing oil and natural gas production, up by 1.3% year-on-year in oil equivalent terms.
PetroChina also benefited from higher international oil prices in the first half of 2024 compared to the same period of last year.