Singapore/Beijing — China’s national offshore producer CNOOC Ltd said on Thursday first-half profit rose nearly 19% from a year earlier, as higher sales of oil and gas offset weaker global oil prices.
Net profit at the listed arm of state-owned China National Offshore Oil Corp was 30.25 billion yuan ($4.26 billion) in the six month through June, filings to the Hong Kong exchange showed. Revenue rose 3% from a year earlier to 108.9 billion yuan.
“The lingering economic and trade disputes, as well as geopolitical instability, may result in further volatility of international oil prices,” CNOOC Chairman Yang Hua said.
Total oil and gas sales expanded 4.4% to 94.28 billion yuan, with net production of oil and gas up 2.1% at 243 million barrels of oil equivalent.
The offshore oil and gas explorer and producer, one of the world’s most cost-efficient among peers, cut its all-in production cost further to $28.99 barrel, 8.9% below the year-ago level.
Total capital spending reached 33.7 billion yuan in the first six months, up 60.5% on year, in line with the company’s pledge late last year to keep it elevated at record rates over the next few years.
CNOOC said it would continue to focus on exploration of mid-to-large sized oil and gas fields. Among the big discoveries made during the first half, Bozhong 19-6, a condensate gas field off north China’s Bohai Sea, has added over 100 million tonnes in proven reserves.
The company continued to make progress at large-scale development projects, including deep-water Lingshui 17-2 and Liuhua 16-2, both in the South China Sea, CNOOC said, without giving further details.
The company had earlier targeted to start production at Lingshui 17-2, its first full-owned deepwater gas project, in 2020. ($1 = 7.0928 Chinese yuan).