CNOOC Ltd, China’s top offshore crude oil and natural gas producer, booked a 13% drop in first-half earnings as record-high domestic and overseas oil and gas production couldn’t offset the decline in oil prices amid volatile and challenging markets.
CNOOC, which specializes in offshore oil and gas developments in China and internationally, reported on Wednesday a net profit of $9.7 billion (69.5 billion Chinese yuan) for the first half of 2025, down by 13% from a year earlier.
The value of oil and gas sales fell by 7%, as the international benchmark Brent oil prices averaged approximately $71 a barrel between January and June, down from an average of over $83 per barrel for the first half of 2024.
The slide in oil prices was partially – but not entirely – offset by record-high oil and gas production.
CNOOC’s net production was 384.6 million barrels of oil equivalent (boe), up by 6.1% on the year, as both domestic and international production topped previous record highs, thanks to several new projects coming online.
CNOOC launched new offshore projects in China, and together with its partners in international projects, it began production at fields offshore Brazil. A total of 10 oil and gas field development projects involving CNOOC either as operator or partner began production in the first half of the year.
Natural gas production jumped by 12% year-over-year, driving the increase in CNOOC’s oil and gas production.
CNOOC is the latest of the Chinese state-held energy giants to report declining profits for the January-June period, due to lower oil prices.
Earlier this week, PetroChina, the largest oil and gas producer in China, reported a 5.4% drop in first-half profit as oil prices fell from a year earlier and domestic fuel demand continued to be pressured by the rise in new-energy vehicle sales.
Last week, the largest Chinese and Asian refiner, Sinopec, reported a 36% slump in first-half profit on the back of lower oil prices and refining margins and weakening domestic fuel demand.
By Michael Kern for Oilprice.com
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