Company Profile：

Where is CNOOC Limited listed and what is its stock code?

● CNOOC Limited is a listed company on the Shanghai Stock Exchange and the Hong Kong Stock Exchange with stock codes of 600938 and 00883, respectively.

What is CNOOC Limited’s core business?

● The Company is the largest producer of offshore crude oil and natural gas in China and one of the largest independent oil and gas exploration and production companies in the world. The Company mainly engages in exploration, development, production and sale of crude oil and natural gas.

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 62.08% of the Company’s shares.

What is the composition of CNOOC Limited Board of Directors?

● CNOOC Limited’s Board currently consists of 7 members, including 2 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 2023？What is the plan of future production growth and where will the growth come from?

● In 2023, the Company achieved a net production of 678 million BOE, hitting a record high.
● The Company’s net production targets for 2024, 2025 and 2026 are 700-720 million BOE, 780-800 million BOE and 810-830 million BOE, respectively.
● Future production growth will mainly come from Bohai, Guyana and Brazil.

What is CNOOC Limited’s exploration result in 2023? What is the future exploration strategy?

● In 2023, we made 9 new discoveries and successfully appraised 22 oil and gas structures, with a number of discoveries of large oil and gas fields and breakthroughs in new plays and new types, which would further underpin the resource base for our sustainable development.
● In the future, we will continue to target the discovery of mid-to-large sized oil and gas fields, increase risk exploration efforts, so as to lay a solid reserve foundation for the Company’s sustainable development.

What is the reserve life and reserve replacement ratio in 2023?

● The total proved reserves of the Company hit a record high, reaching 6.78 billion BOE by the end of 2023.
● The reserve replacement ratio of 2023 was 180%, and the reserve life remained above 10 years for seven consecutive years, further consolidating the reserve base.

CNOOC Limited’s net profit attributable to equity Shareholders decreased yoy. What is the reason?

● Our net profit attributable to shareholders of the Company decreased by 12.6% to RMB123,843 million in 2023, primarily as a result of the Company’s efforts in increasing reserves and production, enhancing quality and efficiency to reduce costs, which effectively resisted the adverse impact of the decline in international oil prices and maintained a strong profitability in spite of the oil price cycles.

The Company’s all-in cost was controlled well in 2023. What is the reason? Will the cost increase in the future?

● Thanks to strict cost control measures, the Company’s all-in cost was US$30.39 per BOE in 2023 maintaining its competitive cost structure.
● In the future, with the change of international oil prices and commodity prices, the cost of the industry will also change, which is uncontrollable. The Company has established a comprehensive and effective cost-control system. In the future, the Company will continue to implement stringent cost controls and maintain its cost competitiveness in the industry.

What is CNOOC Limited’s Capex budget for 2024 and how will the Capex play out in the future?

● Capex budget for 2024 is RMB125-135 billion, which will strongly support our exploration, development and production workload in 2024 as well as its medium to long-term development.
● The Company has many high-quality producing projects and new projects under construction, to support its medium to long-term production growth. Therefore, its Capex is expected to remain at a high level in the coming years.

What about CNOOC Limited's dividend in 2023? What’s the dividend policy of the Company?

● Since its establishment, CNOOC Limited pays close attention to shareholders' return. We strive to share the results of development with shareholders by paying dividend twice a year.
● The Board has proposed the final dividend for 2023 in the amount of HK$0.66 per share (tax inclusive) to our shareholders. Together with the interim dividend of HK$0.59 per share (tax inclusive) already paid, the total final dividend and interim dividend for 2023 is HK$1.25 per share (tax inclusive).
● Our dividend policy is, from 2022 to 2024, subject to the approval by the general meeting of shareholder, the expected annual payout ratio will be no less than 40%, and the annual absolute dividend is expected to be no less than HK$ 0.70/share (tax inclusive).

Environment, Society and Governance

What is CNOOC Limited’s vision in terms of social responsibility?

● We are committed to developing natural resources in a safe, efficient, and environmentally-friendly manner, supplying society with clean, reliable and stable energy and meeting the energy demand of the people.
● CNOOC Limited strives to be the leading force of increasing reserves and production, the driving force of green and low-carbon development, and the propelling force of building a harmonious society.

How does CNOOC Limited conduct its ESG management?

● The Company has incorporated ESG management into the corporate governance structure. The Board of Directors is the top decision-making body for ESG matters and is fully liable for ESG strategies and reporting.
● The Board has established the Strategy and Sustainability Committee, which is responsible for conducting research on the Company's sustainability issues, making recommendations to the Board on relevant policies and strategies and monitoring the Company's commitment and performance on key issues such as climate change.
● In 2023, the Company established the ESG Leading Group and the ESG Management Office under the Strategy and Sustainability Committee. Headed by the Executive Director/CEO, the ESG Leading Group is responsible for implementing the Board's decisions and deployments, arranging and monitoring major issues in ESG management, and receiving reports on ESG work. Members of the ESG Leading Group include the leaders of Human Resources Department, QHSE Department, Department of Science, Technology and Information, and other departments. The ESG Management Office, headed by the Board Secretary, has been established under the ESG Leading Group, which organizes, coordinates and monitors the implementation of ESG programs and prepares the Annual ESG Work Plan for review by the Leading Group.
● The Company has incorporated ESG indicators such as carbon reduction and new energy output into the assessment mechanism of senior managers. Energy conservation and carbon reduction targets have been set for Executive Director/CEO and safety directors. For the Executive Director/CEO and senior managers responsible for development and production, we have set targets of natural gas production.

How does CNOOC Limited identify and manage climate change risk?

● Climate change risk has been identified as a core module of the Company's overall risk management framework.
● The Risk Compliance Office is responsible for assessing the impacts of climate change, establishing and implementing risk mitigation procedures in conjunction with QHSE and other relevant business units.
● We identify and analyze risks and opportunities brought by climate change from the five aspects of policies, technology, the market, reputation and physical risk. We take appropriate measures to deal with this challenge (for details, please visit our official website www.cnoocltd.com "Sustainability - Environmental Protection -Response to Climate Change").

What is the carbon emission reduction measures of the Company and what will be the plans for the future?

● In terms of organizational development, CNOOC has established Green Power and Carbon Trading Division, Carbon-Negative Office, new energy branch and regional companies, which are responsible for systematically managing green power and carbon trading, developing CCS/CCUS and new energy business, and comprehensively implementing the Company's work plan on carbon emission reduction.
● To reduce carbon emission, the Company has been improving its operational performance from the following perspectives. First, accelerate structural adjustment, to increase the proportion of natural gas production, expedite the development of offshore wind power business, select onshore wind and solar power projects, and cultivate hydrogen energy business. Second, stick to energy conservation and emission reduction measures, to produce in a less carbon-intensive manner. Third, further increase the proportion of shore power usage on offshore platforms, and vigorously implement "green power substitution". Fourth, cultivate negative carbon business and steadily promote CCS/CCUS (Carbon Capture and Storage/Carbon Capture, Utilization, and Storage).
● In 2023, the Company has reduced its carbon emissions by 749,000 tons through the implementation of energy-saving technological renovations. The Company's carbon emission reduction targets are as follows: in 2024, the Company plans to achieve a reduction of 523,000 tons of carbon emissions through measures such as flare gas recycling, permanent magnet pump employment, and distributed new energy substitution; by 2025, the Company plans to achieve a cumulative reduction of carbon emissions of over 1.5 million tons.