CNOOC Limited Reports Record First-Quarter Production and Higher Profits

CNOOC Limited, the Hong Kong-listed arm of China National Offshore Oil Corporation, announced record oil and gas production for the first quarter of 2026, driven by higher realised oil prices and increased sales. The company achieved a net production of 205.1 million barrels of oil equivalent (boe), an 8.6% year-on-year increase, marking the highest quarterly output on record. This growth was primarily attributed to contributions from fields such as Kenli 10-2 and the Yellowtail project in Guyana.

Domestic net production from China rose 7% to 140 million boe, while overseas net production increased 12.3% to 65.1 million boe. The company has set a production target of 780 million to 800 million boe for 2026.

Exploration and Development Highlights

During the first quarter, CNOOC Ltd made four discoveries, including the Lvda 16-1 find in Bohai Bay, which highlights the exploration potential of the Paleogene lithological play in the Liaozhong depression. The company also successfully appraised 12 oil- and gas-bearing structures, including one from integrated rolling exploration at Enping 20-5 in the South China Sea. Several development projects commenced production, such as the Huizhou 25-8 oilfield comprehensive adjustment project and the Penglai 19-3 oilfield secondary adjustment project.

Financial Performance and Capital Expenditure

Accelerated exploration and adjustment well deployment, along with production capacity ramp-up, drove capital expenditures to 33.02 billion yuan ($4.8 billion) in the first quarter, a 19.1% year-on-year increase. The company's planned 2026 capex is between 112 billion yuan and 122 billion yuan. Higher realised oil prices and increased sales boosted unaudited oil and gas sales revenue to approximately 97 billion yuan, up 9.9% year-on-year. Net profit attributable to equity shareholders rose 7.1% to 39.14 billion yuan.

Chief executive Huang Yongzhang stated that the company made a good start to the year, achieving tangible results in reserves and production growth, as well as quality and efficiency improvements. He emphasised that CNOOC Ltd will intensify efforts in oil and gas exploration and development, coordinate technological breakthroughs, and focus on lean management to ensure high-quality completion of all tasks.