CNOOC to Increase Renewables Spend

Muyu Xu and Chen Aizhu
Thursday, August 19, 2021

China's top offshore oil and gas driller CNOOC Ltd said it would channel up to 10% of annual spending to green energy by 2025, and announced interim net profit more than tripled from last year as oil prices rebounded.

That doubles a previous target of 5% of spending on green projects as the firm seeks to cut its carbon footprint alongside a strategy that focuses on lifting the share of natural gas in its output portfolio.

CNOOC said on Thursday it plans to expand into onshore wind and solar power from an earlier focus on offshore wind, aiming to build at least 5 gigawatts of combined solar and wind capacity by 2025.

It said U.S. 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), up 221% from a year ago and from 25.48 billion yuan in 2019. It was the highest profit since the first half of 2014.

Revenue in the first half of 2021 jumped 48% from a year earlier to 110.23 billion yuan.

Benchmark WTI prices, which plunged to below zero at one point in April last year, hovered near $70 a barrel in the second quarter of 2021 as the global economy recovered from the pandemic fallout.

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

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

First-half capital expenditure was 36 billion yuan versus 90-100 billion yuan planned for the full year, the highest annual budget since 2014.

($1 = 6.4954 Chinese yuan renminbi)

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

Categories: Energy Renewable Energy Industry News Activity Asia

Related Stories

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

EnerMech Names APAC Regional Chief

ORE Catapult and Japan’s FLOWRA to Jointly Advance Floating Wind

Marine Masters Secures Wellhead Platforms Installation Job Off India

Tokyo Gas Enters LNG Market in Philippines

Eco Wave Finds Partner for Wave Energy Project in India

Vestas Lands First 15MW Offshore Wind Turbine Order in Asia Pacific

Pharos Energy Extends Licenses for Two Vietnamese Gas Fields

Transocean’s Drillship to Stay in India Under New $111M Deal

Current News

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Petrovietnam, Petronas Extend PSC for Offshore Block

Sapura Energy Scoops Close to $9M for O&M Work off Malaysia

Hanwha Ocean Marks Entry into Deepwater Drilling Market with First Drillship

Borr Drilling Bags Three New Assignments for its Jack-Up Drilling Rigs

Eneos Scoops Jack-Up Drilling Contract Offshore Vietnam

Vietnam to Open Bidding Round for Three Offshore Oil Blocks

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Mitsui’s STATS Lands Malaysian Pipeline Isolation Job

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com