CNOOC Reports Record Profit Amid Production Surge and Oil Price Hike

CNOOC Ltd, China's leading offshore oil and gas corporation, has announced exceptional financial results for the first half of 2024. The Beijing-based company reported a substantial 25% increase in net profit attributable to shareholders, reaching 79.73 billion yuan ($11.19 billion).

This remarkable performance can be attributed to a 9.3% rise in net oil and gas production, totaling 362.6 million barrels of oil equivalent. The company's expansion efforts have yielded significant discoveries, including the Lingshui 36-1 ultra-deepwater gas field in the South China Sea and the Bluefin field in Guyana's Stabroek block, where reserves exceeding 100 million metric tons were identified.

CNOOC's technological prowess was showcased at the Enping 21-4 oilfield, where a new offshore drilling depth record was established. The well depth surpassed 9,500 meters, demonstrating the company's capacity to operate in challenging environments.

Financial indicators further underline CNOOC's robust performance. The value of oil and gas sales surged by 22% to 185.11 billion yuan, while overall revenue for the six-month period ending June 30, 2024, increased by 18% year-on-year to 226.8 billion yuan.

Operational efficiency improvements were evident as production costs decreased slightly to $27.75 per barrel of oil equivalent, compared to $28.20 in the first half of 2023. This cost reduction, coupled with increased output and favorable market conditions, contributed to the company's record-breaking results.

In recognition of this exceptional performance, CNOOC declared a record-high interim dividend of 0.74 HKD ($0.095) per share, inclusive of tax. This move reflects the company's strong financial position and commitment to shareholder returns.

"Our focus on technological innovation and strategic expansion has enabled us to achieve unprecedented results. We remain committed to sustainable growth and creating value for our shareholders."

As one of China's three major state-owned oil companies, CNOOC continues to play a crucial role in the nation's energy security. The company's success in both domestic and international markets, including its significant presence in the disputed South China Sea and expanding operations in the Arctic region, underscores its growing influence in the global energy sector.

While celebrating its achievements, CNOOC also faces challenges, including international scrutiny due to its government ties and the need to balance fossil fuel operations with increasing investments in renewable energy sources. As the company moves forward, its ability to navigate these complexities while maintaining its growth trajectory will be crucial for its long-term success.