CNOOC 'Will Spare No Effort' to Boost Reserves, Output in 2H
This article was first published on Rigzone here
CNOOC Limited Chairman Zhang Chuanjiang announced, in a statement posted on CNOOC's site this week, that the company "will spare no effort" to raise reserves and production in the second half of 2026.
"In the second half of the year, we will spare no effort to increase reserves and production, intensify research on core technologies, steadily advance new energy business, and further tap the potential for quality and efficiency improvement," Chuanjiang said in the statement.
The company highlighted in its statement that CNOOC Limited's annual production target for this year is 780-800 million barrels of oil equivalent. It outlined that its capital expenditure budget is RMB112-122 billion ($16.6-18.1 billion).
Chuanjiang noted in the statement that, in the first half of the year, CNOOC Limited "proactively coordinated production and operations and achieved satisfactory results".
In the first half of 2026, CNOOC Limited's net production reached 398.7 million barrels of oil equivalent, which marked a 3.7 percent year on year increase, the statement outlined, noting that both domestic and overseas net production recorded growth.
Five new projects were brought on-stream during the period, the statement highlighted. These included the Penglai 19-3 Oilfield 1/2/3/8/9 Area Secondary Adjustment Project, the Weizhou 10-3 Oilfield West Area Development Project, the Huizhou 25-8 Oilfield Comprehensive Adjustment Project, and the Buzios8 project in Brazil, the statement pointed out.
"A batch of new projects" are also "under rapid development", according to CNOOC's statement.
The company also highlighted in its statement that it "refined the management of reservoirs to effectively control the natural decline rate of offshore oilfields, and enhance recovery factor, thereby ensuring stable production from the producing oilfields".
"In addition, adjustment wells and workover operations were carried out in an orderly manner, bringing incremental volumes," it added.
Exploration
CNOOC revealed in its statement that, in the first half of this year, the company made four new discoveries and "successfully" appraised 16 oil and gas bearing structures.
"Offshore China in the Bohai Bay, Luda 16-1 and Qinhuangdao 30-3 were discovered, and Kenli 10-6 was successfully appraised, demonstrating promising exploration prospects in new areas and new plays," CNOOC noted.
"In the South China Sea, Enping 11-1 was discovered, which could be brought on-stream fast by leveraging existing facilities," it added.
"Wenchang 19-3 was successfully appraised, marking a major exploration breakthrough in the volcanic buried-hills in the Pearl River Mouth Basin," it went on to state.
Looking at its overseas activity, CNOOC said active deployments in strategic areas continued.
"The company entered three exploration blocks in Brazil and Indonesia," it pointed out.
"Among them, the Company for the first time as operator, acquired a new block in the pre-salt Santos Basin in Brazil," it added.
In 1H, CNOOC said it focused on "key" exploration areas "such as deep water and deep plays", in order to "strengthen the theoretical foundation for efficient discovery of oil and gas resources".
CNOOC also stated that "the application of key technologies for increasing reserves and production achieved remarkable results".
"The daily drilling efficiency hit a record high. Besides, breakthroughs in drilling offshore extended-reach wells effectively expanded the employable reserves," it added.
The company outlined in the statement that, during the first half of the year, it formulated the scenario blueprint for the 'Digital & Intelligent CNOOC' initiative, fully deployed the 'Haineng-Zhiqing' digital platform, and "strengthened the digital foundation for intelligent oil and gas fields".
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In its statement, CNOOC highlighted that it focuses on value creation and said it achieved a "remarkable improvement in operational results".
"In the first half of the year, the company generated an oil and gas sales revenue of RMB206.1 billion [$30.6 billion], representing a year on year increase of 20 percent," CNOOC noted.
"Net profit attributable to shareholders reached RMB85.8 billion [$12.7 billion], representing a year on year increase of 23.4 percent. Both set new records for the interim periods in the company's history," it pointed out.
"The all-in cost was $29.7 per barrel of oil equivalent, remaining competitive," it added.
"To actively reward shareholders, the board of directors has resolved to declare an interim dividend of HK$0.94 per share [$0.12] (tax inclusive) for the first half of 2026, with a dividend payout ratio of 45.2 percent and a total dividend payout approximately RMB38.8 billion [$5.7 billion], a new record high for the same period in history," CNOOC continued.
'Strong Start'
In a statement posted on its site back in April, CNOOC Limited announced that it had achieved a "strong start" to the year "with dual growth in production and performance" in the first quarter.
"The company continued to increase reserve and production, while pursu[ing]… effective cost control and efficiency enhancement. Net production of oil and gas and net profit attributable to equity shareholders both grew strongly," CNOOC said in that statement.
In the first quarter of 2026, CNOOC Limited achieved a net production of 205.1 million barrels of oil equivalent, which represented an increase of 8.6 percent year on year, "reaching a new record high", the company outlined.
"Net production from China grew by 7.0 percent year on year to 140.0 million barrels of oil equivalent. Overseas net production rose by 12.3 percent year on year to 65.1 million barrels of oil equivalent," it added.
"The growth was mainly attributable to the production contribution from oil and gas fields including Kenli 10-2 and the Yellowtail Project in Guyana," it continued.
In this statement, the company revealed that its unaudited oil and gas sales revenue for the quarter reached approximately RMB97 billion ($14.4 billion), which it pointed out represented an increase of 9.9 percent year on year, "driven by higher realized oil prices and increased oil and gas sales".
"Net profit attributable to equity shareholders of the company was RMB39.14 billion [$5.8 billion], an increase of 7.1 percent year on year. The all-in cost was $28.41 per barrel of oil equivalent, maintaining cost competitiveness," CNOOC said in its April statement.
CNOOC highlighted in its April statement that, during the first quarter, the company's capital expenditures amounted to approximately RMB33.02 billion ($4.9 billion), which it said was mainly due to the accelerated deployment of exploration and adjustment wells, as well as the ramp-up of production capacity construction.
Huang Yongzhang, Chief Executive Officer and President of CNOOC Limited, said in that statement, "in the first quarter, CNOOC Limited made a good start for the year with tangible achievements in reserve and production growth and quality and efficiency enhancement".
"We will step up efforts in oil and gas exploration and development, coordinate technological breakthroughs, and focus on lean management to ensure the high-quality completion of all tasks," it added.
CNOOC describes itself on its website as the largest producer of offshore crude oil and natural gas in China and as one of the largest independent oil and gas exploration and production companies in the world. The company mainly engages in the exploration, development, production, and sale of crude oil and natural gas, the site highlights.
To contact the author, email andreas.exarheas@rigzone.com
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