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.