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:
What is the Company’s cost status in 1H 2017? Will future costs remain at low level if oil price rebounds?
●     The Company has achieved outstanding results in cost control. All-in costs dropped for the fourth consecutive year and it was largely attributed
       to the Company’s cost reduction and efficiency enhancement initiatives since 2014.
●     In 1H 2017, the Company’s Opex fell 3.5% year-on-year to US$7.16 per BOE.
●     Regarding future cost control measures, the Company will put more emphasis on aspects such as innovation in management, technology and
       business model etc. Meanwhile, the Company will continue to strengthen its evaluation and control of project investments. Currently,
        the breakeven prices of new projects have been successfully managed within US$35.
The Company has achieved effective cost control in 1H 2017. What are the specific measures taken to reduce cost and enhance efficiency?
●     Exploration
         − Address the value-driven exploration philosophy, attach equal importance to both the quantity and quality of oil and gas resources, prioritize
           investments in high-return areas.
         − Focused on innovation-driven strategy, promoted both exploration technology and management innovation in order to boost exploration results.
●     Development and production
         − Effectively managed and controlled Opex.
         − Focused on innovation in management, technology and business model, in order to further lower the threshold for new development projects.
●     Overseas development
         − Further optimize overseas asset portfolio.
         − Global presence with world-class oil and gas assets.
The Capex budget for 2017 is higher than that in 2016. Why did Capex of 1H 2017 fall year-on-year? Any Capex adjustment plan for the whole year of 2017?
●     In 1H 2017, the Company’s Capex was RMB21.4 billion, representing a decrease of 2.7% year-on-year, mainly due to the decrease in
       development Capex according to work plan and schedule adjustment.
●     The Company maintained its Capex budget at RMB60-70 billion.
What is the Company’s exploration results in 1H 2017? Can future exploration support the Company's reserves?
●     The Company continued to adhere to the value-driven exploration philosophy, attach equal importance to both the quantity and quality of oil and gas
       resources, prioritize investments in high-return areas; the Company focused on innovation-driven strategy, promoted both exploration technology
       and management innovation in order to boost exploration results.
●     In 1H 2017, 14 new discoveries and 14 successful appraisal wells were achieved, among which, 13 new discoveries and 12 successful appraisal
       wells were made in offshore China while one new discovery and two successful appraisal wells were made overseas.
●     The Company maintains a high level of exploration Capex each year to focus on the improvement of exploration efficiency, workload and new
       discoveries in the aim of realizing the Company's sustainable development.
What was the Company’s production results in 1H 2017?Will the Company maintain its full-year production target?
●     In 1H 2017, the Company has achieved an outstanding production result. Net production achieved 237.9 million BOE, accounted for 52% of its
       full-year production target and overpassed its planned schedule.
●     Currently, the Company maintained its full-year production target of 450-460 million BOE. The production in the first half was better than expectation,
        while it may be impacted by various uncertainties such as typhoons in the second half of the year. We remain confident of meeting the full-year
        production target.
How are the Company’s overseas assets spread out geographically? Will the Company consider any overseas mergers and acquisitions under the current oil price environment?
●     After years of development, the Company has established a diversified asset portfolio overseas covering over 20 countries and regions.
●     Currently, the Company’s overseas assets contributed over a half of its total assets. Overseas reserves, production and sales revenue
       accounted for 37%, 35% and 28% of the Company respectively.
●     The Company has been actively involved in various global top-tier projects such as Libra, Liza, Buzzard, Appomattox, Stampede etc. and has
       become one of the world's leading industry players.
●     Leveraging its existing assets, the Company will strive to realize organic growth, strengthen its refined management, speed up new technology
       applications, reduce costs and enhance profitability.
●     The Company closely monitors and prudently assesses M&A opportunities, and will consider if suitable targets arise.
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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