CNOOC to further reduce spending in 2016

CNOOC to further reduce spending in 2016

China’s state-run energy giant CNOOC is going to lower its spending in 2016 following a 30% reduction in 2015 amid the depressed oil and gas sectors.

The company reported a revenue of RMB37.7bn ($5.93bn) for the first quarter of this year, down 32.3% year-on-year.

According to Zhong Hua, chief financial officer of CNOOC, the capital spending of the company will continue to drop. “There will be less and less room for capital spending cuts down the road as you can only cut your costs to a certain level,” he said, adding that the company plans to lower spending to RMB70bn ($11bn) this year.

CNOOC expects to produce 475m to 495m barrels of oil this year, an increase of 15% year-on-year. It is targeting 509m barrels in 2016.

Zhong said the company has been seeking opportunities for more acquisitions to optimize its assets.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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