...HONG KONG (S&P Global Ratings) March 31, 2022--A strong oil price, higher output, and cost discipline is putting CNOOC Ltd. on a path to record profit in 2022. The entity has the highest upstream exposure of China's three national oil companies. This exposure, generating about 90% of its revenue, will shield CNOOC from the drag of higher feedstock prices on its downstream business. CNOOC will further boost its output in 2022. It is on track to reach its 2025 target of two million barrels of oil equivalent (mmboe) per day. This would be about 730 mmboe for the year. We assume Brent will average US$85 per barrel for the rest of 2022, up from US$71 per barrel in 2021. CNOOC's 2022 production volume will likely come at the high end of management guidance of 600 mmboe to 610 mmboe, backed by 13 new projects to come on stream during the year. In line with China's pledge to achieve peak carbon emissions by 2030, CNOOC's production growth will largely come from natural gas. Gas output will account...
