CNOOC’s Profits Plunged Due To Lower Oil Prices In 2023

(CTN News) – CNOOC, one of China’s biggest oil and gas companies, reported yesterday that due to the decline in international oil prices, its net profit for 2023 dropped by 12.6% from a record high in 2022 as a result of a decline in domestic oil prices.

A company such as CNOOC, which specializes in offshore oil and gas development in China as well as internationally, has reported a net profit for 2023 of $17.2 billion (123.8 billion Chinese yuan) attributable to its shareholders, a drop from the record $19.7 billion (141.7 billion yuan) recorded in 2022, when oil prices were above $100 per barrel in response to the Russian invasion of Ukraine.

Despite the drop in profits in 2023, the Chinese state oil company said the drop was partially suppressed by reduced costs.

The Chinese company CNOOC has boosted its oil and gas production rates for 2023 to a record-high of 678 million barrels of oil equivalent (boe), over the 650 million boe guidance that it had provided. Likewise, at the end of 2023, the company’s net provided reserves were at their all-time high for the company, which stood at around 6.78 billion barrels of oil equivalent. CNOOC reported that in 2023, the reserve replacement ratio reached 18% and the reserve life for seven consecutive years was above 10 years.

From 2022 to 2023, the all-in costs of producing a boe have decreased by 5.1%, to $28.83 per boe.

CNOOC, the Chinese state-owned oil company, has announced discovery of two major oil fields offshore China since the beginning of this year, as it looks to further increase its production and reserves.

As part of a strategy to boost reserves and production, China National Offshore Oil Corporation (CNOOC) increased in January its oil and gas production targets and capital expenditures to record levels.

This year, CNOOC aims to produce between 700 million and 720 million barrels of oil equivalent as part of its business strategy and development plan for 2024. According to CNOOC, it has significantly increased its production targets for this year.

There has been a target set for the net production of 780 million to 800 million boe for 2025, and a target of 810 million to 830 million boe is expected for 2026, after which output will rise to approximately 810 million to 830 million boe.

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