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Cnooc Succumbs to Crude Rout in First Output Cut Since '99

  • Oil and gas production seen falling as much as 5% this year
  • Capital spending reduced by more than 10% to $9.1 billion
Updated on

China’s largest offshore oil company will cut output for the first time in more than a decade, prompting speculation the nation’s producers are succumbing to the global price war. Shares in Hong Kong fell to a six-year low on Wednesday.

Cnooc Ltd. will produce 470 million to 485 million barrels of oil equivalent this year, slipping from 495 million in 2015, it said in a statement to the Hong Kong stock exchange Tuesday. That would be the first decline since at least 1999. The company said it will chop spending to a maximum 60 billion yuan ($9.1 billion) from last year’s 67.2 billion yuan.