Cnooc Ltd., China’s largest offshore oil and gas producer, reported a significant increase in first-half profits, driven by higher production and rising crude oil prices. Net income for the six months ending in June reached 79.7 billion yuan ($11.2 billion), up from 63.8 billion yuan in the same period last year, according to a statement filed by the state-owned company.
The company achieved a record output of 362.6 million barrels of oil equivalent, as Beijing urged state-owned companies to increase production to strengthen energy security amid growing geopolitical tensions. Cnooc, which focuses more on drilling than other state-owned companies like PetroChina Co. and Sinopec, is more directly affected by changes in oil prices due to its lesser involvement in refining and petrochemicals.
During the first half of the year, the global benchmark Brent crude averaged over $83 a barrel, compared to around $80 a barrel in the same period of 2023. Cnooc also announced the discovery of seven new offshore fields in China, each with reserves of at least 100 million tons of oil equivalent, and a gas field with in-place volumes of at least 100 billion cubic meters.
The company declared an interim dividend of HK$0.74 per share.