March 27, 2025 [Reuters]- China’s CNOOC Ltd  posted a rise of11.4% in 2024 net profit on record output despite weaker oil prices, as the state energy firm continues to focus on increasing reserves and production.

The offshore oil and gas specialist reported a net profit of 137.9 billion yuan ($18.99 billion) in a filing to the Hong Kong Stock Exchange on Thursday. Domestic rival Sinopec Corp reported a 16.8% decline in net income at 50.3 billion yuan.

CNOOC’s oil and gas output rose 7.2% to a record 726.8 million barrels of oil equivalent (boe), meeting the high end of its target.

Historically one of the industry’s lower-cost explorers and producers, the company’s all-in production cost held steadily low at $28.52 per boe, compared to $28.83 in 2023.

Capital expenditure totalled 130.2 billion yuan last year, up versus about 128 billion in 2023.

Proven reserves totalled 7.27 billion BOE as of end of 2024 and the reserve replacement ratio stood at 167%. The reserve life remained at 10 years.

“Reserves are the cornerstone of our development. We adhered to the philosophy of value-driven exploration and targeted

at large and medium-sized oil and gas fields,” the company said.

CNOOC remains a top contributor to China’s domestic oil production growth as state-owned oil companies tackle geologically more challenging and more costly resources such as shale oil to counter a steep decline at mature basins.

The company maintained a focus on developing natural gas, including major projects such as the phase-2 of deepsea Shenhai-1 in the South China sea.

It made a total of 10 oil and gas discoveries such as deepwater Lingshui 36-1 gas field in the South China Sea.

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