CNOOC Limited Achieves Strong Growth in both Net Production and Net Profit in Q1 2024

On April 25, CNOOC Limited announced its operating results for the first quarter of 2024.

In the first quarter, the company pressed ahead with oil and gas exploration and development, advanced the enhancement of quality and efficiency, and consolidated its advantage of cost competitiveness. Net production of oil and gas and net profit attributable to equity shareholders achieved strong growth, both hitting new highs for the same period.

During the quarter, CNOOC Limited recorded a total net production of 180.1 million barrels of oil equivalent ("BOE"), representing an increase of 9.9% year-on-year ("YoY"). The net production from China grew by 6.9% YoY to 123.2 million BOE, which was mainly attributable to the production from the newly commissioned projects. Overseas net production rose by 16.9% YoY to 56.9 million BOE, which was mainly driven by increased production from Guyana and Canada.

The company made 2 new discoveries and successfully appraised 4 oil and gas structures. In particular, Bozhong 8-3 South in offshore China was successfully appraised, opening up a new exploration chapter in ultra-deep plays offshore China. Overseas, a new discovery, Bluefin, was made at the Stabroek block in Guyana, further expanding the resource base in the southeastern portion of the block. During the period, Suizhong 36-1/Luda 5-2 Oilfield Secondary Adjustment and Development Project commenced production. Other major new projects, such as the Shenhai-1 Phase II Natural Gas Development Project, progressed smoothly.

In the first quarter of 2024, in spite of lower international oil prices, CNOOC Limited generated a net profit attributable to equity shareholders of RMB39.7 billion, representing a YoY growth of 23.7%, showing strong value creation capability. The all-in cost was US$27.59 per BOE, a decrease of 2.2% YoY. The company's capital expenditures amounted to approximately RMB29 billion, increased by 17.3% YoY, which was mainly because of the increased workloads at projects under construction and adjustment wells.

Zhou Xinhuai, CEO and President of the company, said, "In the first quarter, CNOOC Limited continued to make breakthroughs in exploration, obtained strong growth in oil and gas production and achieved its best-ever net profit for the same period in history. We will stay focused on our annual production and operation goals, continue to pursue increase of reserves and production, strengthen lean management, and consolidate the high-quality development of the company."