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    Cnooc's 2019 Profit Up 16%


The company plans stringent cost cuts due to lower oil prices and Covid-19 outbreak.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, Exploration & Production, Investments, News By Country, China

Cnooc's 2019 Profit Up 16%

Chinese state-run Cnooc Limited’s net profit for 2019 stood at yuan 61.05bn ($8.6bn), an increase of 15.9% yr/yr thanks to volume growth and effective cost control, it said March 25 in a statement.

Oil and gas sales revenue reached yuan 197.2bn, up 5.7% yr/yr despite fall in average oil and gas price. In 2019, the company’s average realised oil price was $63.34/barrel, down 5.8% yr/yr. The average realised natural gas price was $6.27/’000 ft3, down 2.2% yr/yr.

Total net oil and gas production last year amounted to 506.5mn barrels of oil equivalent, exceeding 500mn boe for the first time and up 6.6% yr/yr, Cnooc Limited said. Natural gas output was 561.3bn ft3, up 5.2% yr/yr. During the year, 23 commercial discoveries were made and 30 oil and gas bearing structures were successfully appraised.

The appraisal of Bozhong 19-6 condensate gas fields in offshore China made a breakthrough again, the company said. In addition, five new discoveries were made in Stabroek block in Guyana, with aggregate recoverable resources of more than 8bn boe. Reserve replacement ratio of the year reached 144% and the reserve life remained stable at a level above 10 years, which further strengthened the resource foundation for the future development, the company said. As at the end of 2019, the net proved reserves of the company exceeded 5bn boe in total.

This year, the company said, the external operating environment remains challenging due to low oil prices and Covid-19 outbreak. Cnooc Limited plans to implement more stringent cost controls and take more prudent investment decisions. 

"We will closely monitor changes in the external environment and the movement of international oil prices, implement more stringent cost controls and more prudent investment decisions, strengthen cash flow management, overcome the impact of the pandemic and maintain the company’s long-term sustainable development," chairman Wang Dongjin said.