China’s state-run energy giant CNOOC is going to lower its spending in 2016 following a 30% reduction in 2015 amid the depressed oil and gas sectors.

The company reported a revenue of RMB37.7bn ($5.93bn) for the first quarter of this year, down 32.3% year-on-year.

According to Zhong Hua, chief financial officer of CNOOC, the capital spending of the company will continue to drop. “There will be less and less room for capital spending cuts down the road as you can only cut your costs to a certain level,” he said, adding that the company plans to lower spending to RMB70bn ($11bn) this year.

CNOOC expects to produce 475m to 495m barrels of oil this year, an increase of 15% year-on-year. It is targeting 509m barrels in 2016.

Zhong said the company has been seeking opportunities for more acquisitions to optimize its assets.