Chinese energy major CNOOC has recorded a 27 percent slump in revenue for the third quarter due to weak oil prices, media reports said. The company specialises in offshore and overseas operations. It is reported that the oil production performed fairly during the third quarter, however, the sales sharply dropped because of the pandemic and an oil trade tension with the kingdom of Saudi Arabia.
CNOOC, told the media, “As the coronavirus outbreak increases uncertainties in global economy and oil prices fall sharply … the company will implement more stringent cost controls and more prudent investment decisions.”
It is reported that production surged 29 percent to 131.2 million barrels of oil equivalent in the third quarter, while the realised oil price of the company averaged $43.03 a barrel during the same period. Furthermore, the domestic production surged a sizeable 10.4 percent but it did not help to boost revenues.
The growth in domestic production is also a result of the Chinese government’s call to local oil companies to bolster the country’s self-reliance on oil. CNOOC curbed overseas production in response to market conditions. The production from assets abroad slumped 4.6 percent during the third quarter.
CNOOC, like other companies, decided to curb spending when the pandemic started to wallop the oil market earlier this year. The company said that it would pick its investments in accordance with the fresh price environment.
The global oil market is still scrambling to recover from the affects of the pandemic. However, the future is uncertain until a proper vaccine is rolled out.