FAQ

Company Profile:
Where is CNOOC Limited listed and what is its stock code?
●     CNOOC Limited is listed on three stock exchanges.
●     The Company’s common stock is traded on the Hong Kong Stock Exchange under the stock code 00883.
●     CNOOC Limited’s American Depositary Receipts(ADRs) are traded on the New York Stock Exchange and the Toronto Stock Exchange
       under the stock codes CEO and CNU, respectively.
What is CNOOC Limited’s core business and where are its assets distributed?
●     CNOOC Limited is China’s largest offshore crude oil and natural gas producer and is also one of the world’s largest independent oil
       and gas exploration and production companies. It is principally engaged in the exploration, development, production and sale of oil and
       natural gas.
●     The Company’s core operation areas are Bohai, the Western South China Sea, Eastern South China Sea and East China Sea in offshore
       China. The Company also has oil and gas assets in Asia, Africa, North America, South America, Oceania and Europe.
What is the relationship between CNOOC Limited and its parent company China National Offshore Oil Corporation?
●     China National Offshore Oil Corporation is the Company’s largest shareholder. It currently holds approximately 64.44% of the Company’s
       shares.
What is the composition of CNOOC Limited Board of Directors?
●     CNOOC Limited’s Board currently consists of 9 members, including 2 executive directors, 3 non-executive directors and
       4 independent non-executive directors.
What is CNOOC Limited’s credit rating?
●     Standard & Poor’s has issued a credit rating of A for CNOOC Limited, while Moody’s has issued a credit rating of A1.
What is CNOOC Limited’s vision in terms of social responsibility?
CNOOC Limited strives to become:
●     The driving force in sustainable energy supply
●     The leader in promoting clean, healthy and environmentally friendly business development
●     The motivating force in promoting social progress together with various stakeholders
What is CNOOC Limited’s dividend policy?
●     The Company will continue to follow the established dividend policy, and constantly focus on shareholder return. Our dividend
       distribution will continue to consider factors such as current and future earnings, financial condition, capital expenditure plans and
       business development progress;
●     At the same time, we will benchmark international peers’ dividend payment.
Operation and Finance:
In line with the rebound in oil prices, will the Company adjust its operating strategies in 2018?
●     The Company closely monitors trends in the oil market. And in line with the rebound in oil prices, the Company will adjust its operating strategy
       over time. Its 2018 strategies include: Steadily increase oil and gas reserve and production level; Continue to reinforce quality and
       efficiency enhancement; Strengthen innovation and technology-driven philosophy; Maintain prudent financial policy and investment
       decision-making; and Pursue a green, healthy and environmentally friendly development model.
What’s CNOOC Limited’s Capex plan in 2018? What oil price assumption is this based on?
●     The Company’s total capital expenditure for 2018 is budgeted at RMB70.0 to RMB80.0 billion, representing a 40-60% increase from
       RMB50.0 billion estimated in 2017.
●     The Capex spending is based on the assumption of US$53 per barrel of Brent oil price.
●     The increased Capex will vigorously support our increasing activities for exploration, development and production in 2018.
●     While raising its Capex, the Company will continue to maintain a prudent financial policy and investment decision-making.
What is CNOOC Limited’s dividend policy? Will the Company adjust the dividend policy in the future?
●     The Company has been committed to delivering a sustainable return for its shareholders ever since it was established.
●     The Company’s dividend distribution will consider the below four factors: current and future earnings, financial condition, capital expenditure,
        business and development progress. The Company will also benchmark international peers’ dividend payments.
●     The Company will announce related information during its 2017 Annual Results Announcement at the end of March.
What is the growth trend of the Company’s reserves?
●     The Company’s reserve life is expected to increase significantly by the end of 2017.
●     Newly added reserves in Liza and Libra projects are expected to be booked.
●     Reserves of the Long Lake oil sands project are expected to be re-booked.
●     The Company will announce reserve-related information during its 2017 Annual Results Announcement at the end of March.
●     And we expect the reserve life in 2018 to continue to increase.
Which are the key exploration areas overseas?
●     In 2018, the Company will focus on its strategic core areas, continue to target mid-to-large size discoveries and further expand its oversea
       reserve base.
●     Besides the strategic core areas, the Company is optimizing its strategic layout in other areas and striving for exploration opportunities.
What is the Company’s production target for the next three years? What are the key driving forces of production growth? Will the production growth in overseas projects move faster than the projects in China?
●     Our production target is 470-480 mmboe this year. Production in 2019 will be approximately 485 mmboe, and in 2020 it will be approximately
       500 mmboe.
●     Currently, the Company has more than 20 projects under construction and a number of new projects will come on stream in the next few years.
       The future projects are expected to provide strong support for the sustainable development of the Company in the mid to long-term.
●     With the overseas projects coming on stream in the next few years, overseas production will be deliver higher growth.
Will the Company increase its efforts in gas exploration in the future? Can the Company share its perspective on the future trend of the gas market?
●     As the issue of climate change gains more attention in the international community, the impact of the Paris Agreement on the market will gradually
        increase.As such, it looks like green and environmental practices are here to stay. Developing natural gas business is one of the Company’s three
       development strategies.
●     Forging ahead, the Company will make efforts on both oil and gas exploration and strengthen gas activities. Meanwhile, leveraging the development
       of China gas market, the Company will continue to increase its supply of clean energy, aiming to help improve the environment.
Others:
What is CNOOC Limited’s mixed ownership reform plan?
●     The Company has been paying close attention to China's policy of deepening reform.
●     We advocate reforms that are aimed to improve operational efficiency and enhance the vitality of enterprises.
●     The Company will continue to focus on upstream businesses and proactively study relevant schemes.

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