Energy Supply

Product Supply

In 2020, the Company made efforts to strictly implement epidemic prevention and control measures, vigorously increase the reserves and production levels, further advance cost reduction and efficiency enhancement, firmly facilitate technological innovation ensure safe production with all strength, and accomplish various production and operation tasks.

We strengthened the philosophy of value-driven exploration and enhanced exploration effectiveness. In China, we focused on the exploration of mid-to-large sized oil and gas fields, and enhanced exploration efforts in new areas, new fields, and new types. Overseas, we insisted on exploration management. A total of 16 new discoveries were made throughout the year, and 42 oil and gas bearing structures were successfully appraised.

The Company unswervingly adhered to the goal of increasing reserves and production, strengthened the leading role of technological innovation, reduced cost and enhanced quality and efficiency, and improved the level of refined management. In future, we are committed to promote further production growth, maintain cost competitiveness, focus on investment returns, strengthen the efforts in nature gas exploration and development, optimize the layout of overseas assets, and adhere to the low-carbon development principle as a way to promote sustainable development.

Product Quality

CNOOC Limited upholds the principle of “people, safety, integrity, foundation, innovation, quality”. Following these principles, we carry out quality improvement actions, identify quality risks, refine quality management systems, cultivate a culture of quality, and continuously improve quality of products.

Strictly adhering to national laws and regulations such as the Regulations of the People’s Republic of China for Product Quality Management, we practice rigorous quality management. This covers:

– quality abnormality report

– quality administration of internal inspection and test institution

– administration of a quality management system

– administration of product quality accident

– administration of quality management group activity

We set up the full-time post of quality, safety and environmental protection strictly in accordance with the requirements during production, strictly adhere to contractual requirements, and domestic and international standards, regarding quality. We invite third-party professionals to conduct independent sampling and undertake self-sampling and joint quality tests with customers. We undertake strict and compliant quality management in an open and transparent manner, and publish objective and truthful reports of the results.

We have strengthened supervision of customer transport of by-products. And we ensure that ships and vehicles meet our standards, to ensure the safety and quality of exported by-products.

By the end of 2020, we had not received any client complaints regarding our crude oil and natural gas products and services. Should any complaint arise, we will communicate with the clients in accordance with national standard GB 36170-2018 and signed contracts, and handle the complaint properly to protect their interests from any loss.

Cyber Security

To be a smart and digital business, we enhance our information systems to tighten our cybersecurity.

Via the operations center at our headquarters, we have achieved dynamic, real-time monitoring of our information assets. Besides, we continually enhance cybersecurity protection via inspections and vulnerability tests to identify and rectify risks.

Technological Innovation

We pursue an innovation-driven technology strategy. This gives us a competitive advantage, boosts our production and reserves, and has helps break the bottleneck of major industries in oil and gas exploration and development.

In 2020, we focused on projects that are the basis of a development strategy that leading to 2035. We have also made major scientific and technological achievements and breakthroughs in key areas such as exploration theory, highly efficient development, deepwater engineering and productive maintenance.

01 We have stabilized the production of Bohai oilfield at 30 million tons with an aim of increasing to 40 million tons. We are aiming for 20 million tons in both Nanhai western oilfield and Nanhai eastern oilfield. These will be the foundation for major technology projects in the seven-year action plan.

02 We have mastered three innovative technologies: cable separate injection technology, non-cable smart separate injection technology and remote automatic smart separate utilization. These have been applied to 152 wells, achieving the independent adjustment and measurement of the platform with an increase of 96% test efficiency.

03 We conducted research on the innovative ecology and technological results transformation and transition. We have proposed a preliminary plan of a technological achievement transformation platform positioning the separation of ownership, disposal and usufruct, research and development, as well as the technology incubator. This will lay a solid foundation for our progress and for the technological achievement transformation.

In 2020, CNOOC Limited:

· Filed patents: 234

· Obtained authorized patents: 232

· Carried out technological and innovative projects: 190

· Gained provincial and ministerial rewards: 4

· Issued standards: 48

Supply Chain Management

CNOOC Limited mapped out and introduced Rules for Implementing Internal Control and Audit which specified comprehensiveness and efficiency regarding management policies such as the review of supplier admission and evaluation and the management of bidding experts.

At the same time, CNOOC Limited renewed and issued a package of management policies such as the Policy on Supply Chain Management, Regulations on the Management of Supply Chain, Supplier and the Implementation of Procurement Contract as well as Regulations on the Management of Supply Chain Procurement in June 2020 according to the Law of the People's Republic of China on Tenders and Bids, the Contract Law of the People's Republic of China and Regulations for the Implementation of the Bidding Law of the People’s Republic of China and other laws and regulations. In so doing, the Company aimed to avoid the risks of environment, society and governance due to inadequate management of suppliers.

Since 2020, we have carried out supplier registration and suppliers list management. Registered suppliers are entitled to participate in procurement activities of CNOOC Limited. Suppliers who sign the purchase contract and excellent suppliers developed by the Company can be listed in the Company’s supplier list. All of the sub-companies share the registered supplier resources and the whole process management information on suppliers.