China National Offshore Oil Corporation (CNOOC), the country’s largest offshore oil and natural gas developer, announced that its 2015 net profit slumped 66.4% due to lower oil prices, Rigzone informed.

According to an annual report that CNOOC published, following the profit decline, the company has imposed cost controls on new projects, CNOOC’s Chairman, Yang Hua, explained. He added that from now on, the management will only approve new projects that are economically viable with oil prices of $35 to $50 a barrel, wrote South China Morning Post.

Further, the company’s report read that its net production rose 14.6% from a year earlier to almost 496mboe, but its sales dropped 32.8%. The average price of oil sold by CNOOC fell 46.6% year on year to $51.3 per barrel.

“We have established a system to streamline our cost structure in the long-term, laying a solid foundation to deal with the risk of continuing low oil prices,” Yang said in a filing to Hong Kong’s stock exchange.