CNOOC to increase spending on renewable energy

August 19, 2021

Credit: Eagle / AdobeStock

China’s leading offshore oil and gas driller CNOOC Ltd said it would funnel up to 10% of annual spending to green energy by 2025, and announced that interim net profits tripled from last year as oil prices recovered.

That doubles a previous target of 5% spending on green projects, as the company seeks to reduce its carbon footprint alongside a strategy that focuses on increasing the share of natural gas in its production portfolio.

CNOOC said Thursday that it plans to expand to onshore and solar wind from an earlier focus on offshore wind, with a goal of building at least 5 gigawatts of combined solar and wind capacity by 2025.

He said the US sanctions imposed on the company in early 2021 had not had a substantial impact on its business and urged Washington to lift the “unreasonable” measures.

CNOOC’s first half net profit reached 33.33 billion yuan ($ 5.13 billion), 221% more than a year ago and 25.48 billion yuan in 2019. It was the highest profit. high since the first half of 2014.

Revenue in the first half of 2021 increased 48% from the previous year to 110.23 billion yuan.

WTI benchmark prices, which fell below zero at one point in April last year, hovered around $ 70 a barrel in the second quarter of 2021 as the global economy recovered from the aftermath of the pandemic.

CNOOC, one of the industry’s lowest-cost explorers and producers, said its total cost of production was $ 28.98 per barrel, up from $ 26.34 in 2020, due to “rising commodity prices. premiums and other factors “.

Oil and gas production hit a record 278.1 million barrels of oil equivalent (boe), a 7.9% year-on-year increase, driven by several new projects in Bohai Bay and the South China Sea, such as the Lingshui 17-2 ultra-deep gas project.

Capital spending for the first half was 36 billion yuan compared to the 90-100 billion yuan forecast for the full year, the highest annual budget since 2014.

($ 1 = 6.4954 Chinese yuan renminbi)

(Reporting by Muyu Xu and Chen Aizhu; Edited by Susan Fenton, Kirsten Donovan)

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