CNOOC's reserves and production reach new highs in 2025, with continued strengthening of profitability resilience

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By reporter Xiang Yantao

On March 26, China National Offshore Oil Corporation (hereinafter referred to as “CNOOC”) released its annual report for 2025. During the reporting period, the company achieved a total operating revenue of 398.22 billion yuan, with oil and gas sales revenue of 335.7 billion yuan, and a net profit attributable to shareholders of 122.1 billion yuan. At the same time, the company’s board of directors proposed a dividend payout ratio of 45% for 2025, equivalent to an annual dividend of 1.28 HKD per share (tax included), of which the final dividend is 0.55 HKD per share (tax included).

In 2025, CNOOC’s oil and gas reserve production reached a new high, achieving a net production of 77.73 million barrels of oil equivalent for the year, a year-on-year increase of 7%. Among them, crude oil increased by 5.8% year-on-year, and natural gas increased by 11.6%.

At the performance press conference held that day, the management of CNOOC stated in response to a question from a reporter from Securities Daily that CNOOC has continuously regarded reserve growth and production increase as its core business, working collaboratively on both reserves and production for many years. Currently, the company maintains an exploration investment of over 20 billion yuan annually and moderately raises its annual reserve discovery targets. Domestically, the company has achieved significant breakthroughs in deep exploration (over 5000 meters) through broadband seismic, seabed node seismic, and other technologies; internationally, the deepwater projects in Guyana and Brazil have made significant contributions, while the company is also increasing its efforts to acquire global exploration blocks, focusing on long-term reserve and production replacement.

In terms of increasing production, the company is expanding new fields through technological advances while deeply tapping into the potential of old oil fields. Through rolling exploration and development, the company maintains over 200 adjustment wells annually in the country, continuously discovering new reserves. While controlling the overall stability of reserves, the company significantly increases recoverable reserves, supporting production growth and balancing barrel oil costs.

At the same time, CNOOC is also continuously strengthening its cost competitive advantage and profit resilience. The major cost of barrel oil for the entire year of 2025 is 27.9 USD per barrel of oil equivalent, a year-on-year decrease of 2.2%. Regarding cost control, the management of CNOOC stated that the company has long adhered to a low-cost strategy, making it a core competitive strength and part of its corporate DNA. In the future, in the face of challenges such as rigid increases in factor costs, the company will adopt multiple measures, including enhancing recovery rates and reducing decline rates through technological innovation and digital empowerment; promoting engineering standardization to accelerate cost reductions; deepening refined management; strengthening source control and optimizing investment decisions; relying on the expansion of reserve production scale to dilute costs; and strictly adhering to safety production bottom lines.

On the integration and development of new energy business with traditional oil and gas business, CNOOC’s management stated that the company insists on clean production of oil and gas and promotes the development of new energy and new industries. In 2025, the company will continuously increase the use of green electricity through shore power projects, utilizing 1.08 billion kilowatt-hours of green electricity throughout the year, reducing carbon emissions by 680,000 tons. The large-scale resource acquisition for offshore wind power and the construction of demonstration projects have made solid progress, and the development of negative carbon businesses such as CCS/CCUS is robust.

Regarding the operational goals for 2026, CNOOC’s management stated that in 2026, the company will focus on its core oil and gas business, continuously pursuing effective production, with a production target for the year set at 78 million to 80 million barrels of oil equivalent. While supporting steady production growth, the capital expenditure budget for 2026 will remain stable at 112 billion to 122 billion yuan.

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Editor: Gao Jia