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 65.01% of the Company’s
       shares.
What is the composition of CNOOC Limited Board of Directors?
●     CNOOC Limited’s Board currently consists of 8 members, including 3 non-executive directors, 1 executive director, 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.
Operation and Finance:
What is the production performance in 2020, and where will future production growth come from?
●     In 2020, the Company achieved a net production of 528.2 million BOE, hitting another record high.
●     In the future, the Company’s production will continue to grow. The net production target of 2021 is 545-555 million BOE and the daily net
       production is expected to reach 2 million BOE by 2025.
●     Future production growth will mainly come from organic growth and also include potential overseas mergers and acquisitions.The organic
        growth will mainly come from Bohai and Western South China Sea in offshore China, and Guyana in overseas.
What is CNOOC Limited’s exploration results in 2020? Which region will future reserve growth come from?
●     In 2020, 16 new discoveries were made and 42 oil and gas structures were successfully appraised.
●     The Company still has great potential for reserve growth in the future.
●     First of all, Bohai still has huge exploration and development potential. We made another buried hill structure discovery of Bozhong 13-2
       in Bohai after Bozhong 19-6. Secondly, risk exploration of Huizhou26-6 buried hill structure was achieved successfully. Furthermore, there is
       great exploration potential in deepwater of South China Sea.
What is the reserve life and reserve replacement ratio in 2020?
●     Total proved reserves of the Company hit a record high, reaching 5.37 billion BOE at the end of 2020 with a reserve replacement
       ratio of 136%.
●     Reserve life at the end of 2020 was 10.2 years, which maintained above 10 years for 4 consecutive years.
What was the all-in cost in 2020? Will the cost be further reduced in the future?
●     The Company always strives to control its costs and has established an effective cost control system. In 2020, all-in cost of the Company
       reduced to US$26.34 per BOE, a record low in 10 years.
●     In the future, the Company will continue to implement stringent cost controls and maintain cost competitiveness in the industry.
What is CNOOC Limited’s Capex budget for 2021 and how will the Capex play out in the future?
●     Capex budget for 2021 is RMB90-100 billion.
●     The increased Capex will strongly support CNOOC Limited's exploration, development and production workload in 2021 as well as its
       medium to long-term development.
●     As the Company has many new high-quality projects under construction to support its medium to long-term production growth,
       Capex is expected to remain at a high level in the coming years.
How will CNOOC Limited achieve the target of increasing the proportion of natural gas production to 30% in 2025?
●     CNOOC Limited will continue to promote low-carbon development. It will stabilize oil production, promote natural gas supply and make
        efforts on both oil and gas exploration.
●     In the coming years, the proportion of natural gas production will gradually increase with the release of production capacity of producing
        gas fields and the development of large gas fields such as Lingshui 17-2 and Bozhong 19-6.
●     The Company will also actively acquire high-quality natural gas resources through mergers and acquisitions.
What is CNOOC Limited’s dividend policy and will it change in the future?
●     The Company maintains a consistent dividend policy since its establishment.It always focuses on shareholders' return and strives to
        share the fruitful results of corporate development with its shareholders.
●     In determining of dividend distribution, we mainly consider the Company's profitability, financial position and Capex plan.
        The Company also benchmarks its dividend payment against peers’ payout levels aiming to maintain a leading dividend payment
        in the industry.
Environmental, Social and Governance
What is CNOOC Limited’s vision in terms of social responsibility?
●     CNOOC Limited strives to be:
        -    A driving force for the supply of sustainable energy
        -    A motivating force for joint progress of stakeholders and society
        -    A dominating force for clean, healthy and green energy development models
●     CNOOC Limited is committed to
        -    Ensuring the stable supply of energy in the world and enhancing supply capacity
        -    Pursuing sustainable development and producing clean energy
        -    Operating in compliance with laws and regulations and adhering to a high standard of business ethics and corporate governance
        -    Exploiting resources in a safe and environmentally-friendly way and responding actively to climate change
        -    Proactively participating in community-building activities and making contributions to the general welfare
        -    Respecting the rights and interests of stakeholders and pursuing a win-win situation
How does the company's board participate in ESG management?
●     CNOOC Limited attaches much importance to ESG management and has incorporated ESG management into corporate governance. The Board is the
        highest decision-making body for ESG matters, and it takes overall responsibility for the Company’s ESG strategies and reporting. Its responsibilities
        include evaluating and identifying ESG risks, ensuring the establishment of appropriate and effective ESG risk management and internal control
        systems, and overseeing and managing ESG goals and work progress
●     The Company has established an ESG Audit Committee, which is responsible for evaluating and auditing the Company’s ESG reports and submitting
        them to the Board. The director of this Committee is undertaken by the CEO, and its members are executives of the Company
●     The Board receives a special report on safety and environmental protection from the Company’s Chief Safety Officer once a year and a report on risk
        control and compliance from the Company’s executives at least twice a year. It also reviews corporate governance reports; working reports on internal
        control, risk management and compliance management; ESG reports, and the results of communication between stakeholders and analysis of material
        issues
How does the company identify and manage climate change risks?
●     Climate change risk has been recognized as a core module for CNOOC Limited’s overall risk management framework. The Risk Control Office is
        responsible for assessing the impact of climate change and works with QHSE and relevant business units to set up and carry out risk mitigation
        procedures. We identify and analyze the risks and opportunities brought by climate change from policies and regulations, technologies, market,
        reputation, and physical, and respond with appropriate measures (please refer to our company website (www.cnoocltd.com) –“Social Responsibility
        -Environmental Protection-Response to Climate Change” for more information).
What is the carbon emission reduction measures of the Company and what will be the plans for the future?
●     We established working groups and a designated department to conduct research and formulate a roadmap. Meanwhile, CNOOC Limited prepared
        implementation schemes on Greem Development Actions Plan. We aim to pursue a low-carbon strategy, increase the supply of clean energy
        and promote green development
●     We have set the following targets regarding carbon emission reduction(please refer to our company website (www.cnoocltd.com)–“Social
        Responsibility-Topic- Pursuing the Low-carbon Strategy, Driving Energy Transition” for more information):
−     From 2021 to 2025, we will reduce cumulative CO2 by over 1.5 million tons
−     By 2025, natural gas will account for an estimated 30% of total oil and gas production
−     By 2025, we will invest approximately 5% of capital expenditure in the new energy field every year.
●     We implemented our carbon strategy in three aspects
−     Improve the supply capacity of natural gas: we continue to intensify the exploration and development of natural gas, promote key natural
       gas projects including Bozhong 19-6 Condensate Gas Field, Dongfang 13-2 Gas Field, Lingshui 17-2 Gas Field, improve the supply of natural
       gas, and strengthen the development of unconventional natural gas, so as to provide society with more clean, low-carbon energy options.
−     Exploring New Energy and Renewable Energy: we make differentiated choices about our offshore-focused new energy business, speed up the
       industrialization and scaled development of offshore wind power, and promote the utilization of renewable energy.
−     Promote green, low-carbon production: we have been consolidating fundamental management. We are dedicated to promoting clean production
       and sustainable development. We tighten the control of carbon at the source, change offshore energy-consumption patterns, set up a low-
       carbon, intelligent energy monitoring platform with the construction of green oilfields and factories to integrate a low-carbon concept
       into the whole industrial chain.