CNOOC More Than Doubles H1 Profit Hitting $10.5B

China National Offshore Oil Corporation (CNOOC), the largest offshore oil and gas producer in China, posted a profit of $10.46 billion in the first six months of the year, more than doubling the income compared to H1 2021.

Over the first six months, the company focused on enhancing the quality and efficiency of its operations, and effectively organized its production to seize the favorable time window of high oil prices, thereby recording the highest net profit and revenue so far.

In the first half of the year, the oil and gas sales revenue reached $25.7 billion, up by 75.6 percent YoY. The net profit attributable to equity shareholders of the company reached the aforementioned $10.46 billion, representing a significant increase of 115.7 percent YoY.

Benefiting from effective cost control, the all-in cost in the first half of 2022 was $30.32 per boe, while the operating cost was $7.77 per boe. The company’s capital expenditure amounted to approximately $6 billion (RMB 41.6 billion), increased by 15.4 percent YoY, providing strong support for future reserves and production growth.

The company also significantly increased its oil and gas production, with net production hitting a record high for the same period, reaching 304.8 million BOE, representing a year-on-year increase of 9.6 percent. The decline rate of the producing oilfields in China was brought under effective control.

In offshore China, two middle-to-large-sized discoveries, namely Bozhong 26-6 and Bozhong 19-2, were made and confirmed. Overseas, five new discoveries were made in Stabroek block in Guyana. The recoverable resources of Stabroek block have reached approximately 11 billion boe. In terms of unconventional resource growth, the new breakthrough was made in offshore shale oil exploration, and the fracturing experiment in onshore deep coalbed methane layers was successfully completed.

Overseas, the net production of the projects exceeded the set goals. New projects such as Weizhou 12-8E oilfield development project and Liza Phase II in Guyana have been commissioned successfully. Other major projects under construction such as Enping, Lufeng, and Kenli have progressed steadily.

Making Technological Advancement

The company continued to make breakthroughs in technological innovation. After the launch of the Shenhai-1 energy station last year, in the first half of this year, the company successfully installed Haiji-1 jacket platform, the first deepwater jacket in Asia, independently designed and built.

The first set of shallow-water subsea wellheads and Christmas passed the sea trials, both independently developed by the company.

Also, the application of shore power at Qinhuangdao 32-6 oilfield helped to build it into the benchmark project of offshore smart oilfields and created a new model of intelligent, safe, and efficient exploitation of offshore oil and gas resources.

Green electricity was utilized on a large scale on offshore platforms for the first time. It actively explored the new mode of offshore green and low-carbon industry and jointly launched China’s first large-scale offshore CCS/CCUS hub research project in Daya Bay. Leveraging its marine advantages, the company started the construction of the Wenchang deep-sea floating wind farm demonstration project, utilizing domestic technologies.

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