In the first half of 2016, China National Offshore Oil Corporation (CNOOC), the largest offshore oil and gas producer in the country, reported a loss of 7.74 billion yuan (US$1.15 bn) thanks to the drop in global oil prices, marking the first time the company has run a deficit since it was listed in 2001.
By
NewsChina
Updated Dec.1
In the first half of 2016, China National Offshore Oil Corporation (CNOOC), the largest offshore oil and gas producer in the country, reported a loss of 7.74 billion yuan (US$1.15 bn) thanks to the drop in global oil prices, marking the first time the company has run a deficit since it was listed in 2001. The economic loss has released pent-up internal conflicts, causing the departure of half of its executive-level staff. A firm that was once seen as setting management standards and taking an international outlook is now finding it increasingly hard to draw a line between government demands and its role as an enterprise, like many other large State-owned enterprises. At a recent senior management meeting, Yang Hua, the CNOOC chair, said the company faces huge production and operational pressures and that it is at a crossroads of “survive or perish.” Even more dangerous than the loss, experts say, is the lack of a clear orientation for the firm.