Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
Ping An-Affiliated Fintech Firm OneConnect Raises Capital from New Share Sale As It Eyes Global Expansion
Pompeo Hints At ‘Broader’ Ban on Chinese Apps After Trump’s Executive Orders Targeting TikTok and WeChat
Trending in China: Merchants and Netizens Forced to Pick Sides in Fight Between Delivery Firms
Baidu-Backed Video Streamer iQiyi Probed by U.S. Regulator After Short Seller’s Report
AI Unicorn SenseTime Is Said to Mull Hong Kong, China IPO
Huawei Copies Korean Rivals by Manufacturing Own Display Driver Integrated Chips
JOYY’s Livestreaming Revenue Up 40% in Second Quarter of 2020
Trending in China: ‘Mukbangs’ Under Fire in China Amid High Level Food Waste Campaign
Trending in China: How Will the Chinese Diaspora Survive a WeChat Ban In U.S.?
Online Platform JD.com Buys into Bricks and Mortar Convenience Store Chain
China Unicom Profits Rise in First Half, Stock Soars
ByteDance in Talks with Indian Conglomerate Over TikTok Amid Layoff Fears
Alibaba’s Zhang Yong Tops 2020 Forbes China Best CEOs List
Trending: Family Feud Raises Big Questions Over Succession in China’s Multi-Million “Family” Businesses
Shanghai-Listed Foxconn Internet’s Cloud Service Sales Up 4% in First Half of 2020
U.S.-Listed Chinese Companies Nio and Huya Have Something to Cheer About
Apple Edges Huawei Out of No. 1 in Quarterly Tablet Shipments
Chinese Finance Platform Lufax Files for U.S. IPO of up to $3 Billion
China Mainland Leads U.S. in Fortune Global 500 Companies But Trails in Profitability
Trending in China: Tencent – Fighting Youth Unemployment or Enemy of Older Workers?
CNOOC Says ‘Jiayou!’ to Domestic Oil and Beefed-Up Budget

By David Kirton / Jan 24, 2019 02:58 PM / Business & Tech

Photo: VCG

Photo: VCG

State-owned China National Offshore Oil Corp. (CNOOC) is pointing both barrels at domestic production and exploration in 2019, and plans to ramp up spending to a five-year high.

And China’s gonna need it. The country’s oil consumption increased 10% in 2018, with burgeoning petrochemicals spurring demand. Yet domestic production has been unable to slake the growing thirst, with oil imports rising 30% the same year.

This is concerning for a government that prides itself on self-sufficiency. In August, President Xi Jinping called on China’s three state-owned producers to prioritize boosting domestic oil production, with existing domestic fields starting to run dry in recent years.

CNOOC is heeding the call, and will beef up its annual budget to 70 to 80 billion yuan ($10.3 billion to $11.8 billion), up from 63 billion yuan last year, it announced at its yearly strategy conference this week.

The extra funds mainly will be used to splash out on domestic production and exploration, which will take up 62% of the budget in 2019, compared to 51% a year earlier.

The company is also turning to international partners to lend a hand in the domestic digging. In December, CNOOC announced it had signed exploration agreements with nine major international players to search for oil in the Pearl River Mouth basin, in the south of Guangdong province.

The company has also added wind to its sails this year, starting work on an offshore wind project in Jiangsu province earlier this month.

CNOOC’s stocks were buoyed by the announcement, rising 1.74% by midday Thursday in Hong Kong.

Related: Record-Breaking December Caps Year of Strong Growth in Oil, Gas Imports

Support independent journalism from China. Subscribe to Caixin Global starting at $0.99.

Share this article
Open WeChat and scan the QR code