CNOOC's Resilient Growth: Strong Production Gains and Strategic Developments in Challenging Market

CNOOC's Steady Growth Amidst Industry Challenges

CNOOC Limited (SEHK: 00883; SSE: 600938) has reported robust operating results for the third quarter of 2025, showcasing significant advancements in both oil and gas production as well as reserve enhancements. The company achieves a net production of 578.3 million barrels of oil equivalent (BOE) over the first three quarters, reflecting a 6.7% increase compared to the same period last year. Of particular note is the surge in natural gas production, which rises by 11.6%. Domestic operations lead this growth, with production from China climbing 8.6% to 400.8 million BOE. Key contributions stem from successful projects such as the Shenhai-1 Phase II and Bozhong 19-2 fields, underscoring CNOOC's effective exploration and development strategies.

In overseas ventures, CNOOC also experiences a positive trajectory, with production increasing by 2.6% to 177.4 million BOE, largely attributed to the Mero 3 project in Brazil. The company emphasizes its commitment to international expansion, evidenced by the commencement of production in 14 new projects, including significant developments like the Kenli 10-2 Oilfields Development Project and the Yellowtail Project in Guyana. These efforts not only bolster CNOOC's production capacity but also enhance its competitive edge in the global energy market. The company’s strategic focus on diversifying its portfolio across various geographical territories aims to mitigate risks associated with regional fluctuations.

Despite facing a 14.6% year-on-year decline in Brent oil prices, CNOOC maintains profitability, reporting oil and gas sales revenue of RMB255.48 billion and a net profit of RMB101.97 billion. The all-in cost per BOE decreases to US$27.35, reflecting a commitment to effective cost management and operational efficiency. President Yan Hongtao reiterates the company’s focus on achieving its full-year objectives, indicating a strong resolve to navigate the complexities of the energy sector while ensuring sustainable growth.

In addition to its operational achievements, CNOOC’s strategic exploration initiatives yield five new discoveries and 22 appraisals of oil and gas-bearing structures, highlighting its proactive approach to resource development. The promising Kenli 10-6 appraisal is anticipated to evolve into a medium-sized oilfield, marking a significant milestone in the company’s growth trajectory.

As CNOOC continues to expand its production capabilities and enhance its operational efficiency, the company's performance serves as a strong indicator of resilience in a challenging market environment. With ongoing investments and strategic project developments, CNOOC positions itself to leverage future opportunities in the global energy landscape.