Asia (excluding China)

Asia (excluding China) is the first overseas region the Company entered. Currently, the Company owns oil and gas assets mainly in Indonesia, Iraq and the United Arab Emirates. As of the end of 2022, the reserves and production in Asia (excluding China) reached 284.2 million BOE and 82,842 BOE/day, respectively, representing approximately 4.6% of the Company’s total reserves and approximately 4.8% of its production.

Indonesia

As of the end of 2022, the Company’s asset portfolio in Indonesia comprised mainly of two development and production blocks, namely the Madura Strait and Tangguh.

Among them, the Madura Strait block is a joint operation block. In 2022, the MDA and MBH gas fields in the block were successfully commissioned, and the MAC gas field was being drilled. As of the end of 2022, the Company had built a gas production base with an annual capacity of 2.57 billion cubic meters, making it the largest gas supplier in East Java.

The Company owns approximately 13.9% interest in the Tangguh LNG project in Indonesia. In 2022, phase I production remained stable with a daily net production of approximately 20,000 BOE. The construction of the phase II LNG production line has been delayed. The Indonesian government has approved the extension of the PSC for the Tangguh project until the end of 2055.

Iraq

The Company owns a 63.75% participating interest in the technical service contract of Missan oilfields in Iraq and acts as the lead contractor.

In 2022, the Company adopted innovative management measures and technology initiatives in the Missan oilfield and continuously adjusted and optimized the production enhancement project program, resulting in a successful increase in a gross production of 300,000 BOE per day and a sustained steady production. Daily net production declined to approximately 25,000 BOE due to the impact of the contract recovery model.

United Arab Emirates

The Company indirectly holds 4% interest in each of the two oilfield contract areas, namely the Lower Zakum Shallow Water Oilfield and Umm Shaif & Nasr Oilfield in Abu Dhabi. In 2022, the projects maintained stable production with an average daily net production of approximately 30,000 BOE.

Oceania

Currently, the Company’s oil and gas assets in Oceania are mainly located in Australia and Papua New Guinea. As of the end of 2022, the reserves and production from Oceania reached 38.7 million BOE and 32,281 BOE/day, respectively, representing approximately 0.6% of the Company’s total reserves and approximately 1.9% of its production.

Australia

The Company owns a 5.3% interest in the North West Shelf LNG Project in Australia. The producing project supplies gas to the end-users including the Dapeng LNG Regasification Terminal in Guangdong, China.

In 2022, production from the NWS Project remained stable. The incremental gas production exceeded target and generated favourable economic returns.

Other Regions in Oceania

The Company owns interests in one exploration block in Papua New Guinea.

Africa

Africa is an important source of oil and gas for the Company overseas. The Company’s assets in Africa are primarily located in Nigeria and Uganda. As of the end of 2022, the reserves and production in Africa reached 88.3 million BOE and 75,647 BOE/day, respectively, representing approximately 1.4% of the Company’s total reserves and approximately 4.4% of its production.

Nigeria

The Company owns a 45% interest in the OML130 block in Nigeria. The OML130 block is a deepwater block comprised of four oilfields, namely Akpo, Egina, Egina South and Preowei.

In 2022, daily net production of Akpo oilfied was approximately 38,000 barrels due to natural decline. The Egina oilfield maintained stable production with a daily net production of approximately 31,000 barrels.

In addition, the Company holds a 20% non-operating interest in the OML138 block offshore Nigeria, and an 18% non-operating interest in the OML139 and OML154 PSCs, respectively.

We will deepen our regional coordination to establish an oil and gas production base in West Africa centred around Nigeria.

Uganda

The Company owns a 28.3333% interest in each of EA 1, EA 2 and EA 3A blocks in Uganda. The blocks are located at the Lake Albert Basin in Uganda, which is one of the most promising basins in terms of oil and gas resources onshore Africa.

In February 2022, the full-scale construction of the long- distance pipeline project was officially launched and is now progressing steadily. In the future, the Company will continue to work actively with its project partners and the Ugandan government.

Other Regions in Africa

Apart from Nigeria and Uganda, the Company also owns interests in exploration blocks in countries and regions such as Gabon, Congo-Brazzaville and the Senegal- Guinea-Bissau Joint Economic Zone.

North America

North America is one of the Company’s largest overseas oil and gas reserves and production regions. The Company holds interests in oil and gas blocks in the U.S., Canada, Mexico and Trinidad and Tobago. As of the end of 2022, the reserves and production in North America reached 1,150.6 million BOE and 144,345 BOE/day, respectively, representing approximately 18.4% of the Company’s total reserves and approximately 8.4% of its production.

The U.S.

The Company owns interests in two onshore shale oil and gas projects in the U.S. and two offshore deepwater projects in the Gulf of Mexico.

CNOOC Limited holds 26% and 13% interests in Eagle Ford and Rockies, respectively, which are two onshore shale oil and gas projects in the U.S. Production from the Eagle Ford and Rockies projects was impacted in 2022 by a decline in drilling activities, with daily net production from the Eagle Ford project at 34,000 BOE.

CNOOC Limited owns 25% and 21% interests in two important deepwater projects, namely Stampede and Appomattox, respectively, in the U.S. Gulf of Mexico. In 2022, both projects’ production increased, benefiting from better-than-expected performance of production wells in. In particular, the daily net production of Appomattox project reached approximately 22,000 BOE. In addition, the Company also owns interests in several other exploration blocks in the U.S. Gulf of Mexico.

Canada

Canada is one of the areas rich in oil sands resources in the world. The Company owns 100% working interest in Long Lake and three other oil sands projects in the Athabasca region of northeastern Alberta in Canada.

In 2022, the Company seized the opportunity of high oil prices, actively drilled adjustment wells and accelerated production of the Long Lake Southwest project, effectively increasing time efficiency rate. The successful resumption of production from the K1A project and the smooth restart of some facilities at the reforming plant boosted a significant increase in production, with a daily net production of approximately 44,000 BOE.

The Company holds a 7.23% interest in the Syncrude project and its daily net production in 2022 was approximately 18,000 BOE. The Company also holds a 25% interest in the Hangingstone oil sands project and non-operating interests under several other exploration and development licences.

Other Regions in North America

The Company owns a 12.5% interest in the 2C block in Trinidad and Tobago, which is a producing asset with stable output and favourable economic returns in 2022.

In addition, the Company also owns 100% operating interest in block 1 and a 40% operating interest in block 4 of the Cinturon Plegado Perdido deepwater exploration blocks in Mexico, respectively. In 2022, the drilling of one wildcat well in block 1 was completed.

South America

South America has become the largest region for the Company’s overseas oil and gas production and is a significant source of production growth for the Company. The Company holds interests in oil and gas blocks in Brazil, Guyana and Colombia, as well as a 50% interest in BC ENERGY INVESTMENTS CORP. (“BC”) in Argentina. As of the end of 2022, the reserves and production in South America reached 1,024.0 million BOE and 145,677 BOE/ day, respectively, representing approximately 16.4% of the Company’s total reserves and approximately 8.5% of its production.

Brazil

Brazil deepwater is one of the world’s most important deepwater oil and gas development regions. CNOOC Limited holds a 10% interest in Libra project and a 7.34% interest in Buzios project in Brazil. The projects are both located in the Santos Basin.

The deepwater pre-salt Libra project is divided into the west, east and central zones, of which the west zone was commercially discovered in 2017 and is named the Mero oilfield. The Mero oilfield consists of four phases, namely Mero 1, Mero 2, Mero 3 and Mero 4. In 2022, the Phase I of Mero project successfully commenced production. The final investment decisions for Mero 2, Mero 3 and Mero 4 oilfields have been made, and the projects are expected to commence production in 2023, 2024 and 2025, respectively.

The Buzios project is the world’s largest producing deepwater oilfield. The Buzios project consists of 11 development units, and units 1, 2, 3 and 4 have been already in production with a daily net production of approximately 23,000 BOE, and the Buzios5 project is scheduled to commence production in 2023. Other development units will come on stream in the future, strongly supporting the Company’s overseas production growth.

In the future, the Company will fully leverage the development of the Libra project and Buzios project to seek new drivers of production growth.

CNOOC Limited also holds a 100% interest in block 592 in offshore Brazil, a 20% interest in the ACF Oeste block and a 30% interest in the Pau Brasil block.

Guyana

The Stabroek block in offshore Guyana is located in northeastern Guyana with a water depth of 1,600-2,000 meters, and is one of the world’s largest exploration discoveries in recent years and CNOOC Limited holds a 25% interest in the block.

The Phase I and Phase II of the Liza oilfield in the block were commissioned in 2019 and 2022 respectively, with a designed peak daily production of 340,000 BOE. As of the end of 2022, the above two phases of the project saw steady production above their designed peak daily production, with an average daily production of approximately 380,000 BOE. Phase III of the project, the Payara oilfield, is under construction and expected to be commissioned in 2023. Phase IV of the project, the Yellowtail oilfield, was approved by the Guyana government in 2022 and expected to come on stream in late 2025.

In 2022, 10 new discoveries including Lau Lau, Fangtooth, Barreleye, Lukanani, Patwa, Kiru Kiru, Seabob, Yarrow, Sailfin and Fangtooth SE were made in the Stabroek block. Currently, a total of over 30 discoveries have been made in the block and the total recoverable resources in the block amounted to approximately 11 billion BOE as disclosed by the operator.

Argentina

CNOOC Limited holds a 50% interest in BC and makes joint decisions on its management. BC holds a 50% interest in Pan American Energy Group in Argentina.

In 2022, the daily net production of BC remained stable at approximately 55,000 BOE.

Other Regions in South America

The Company also holds recurring exploration rights in Boqueron block in Colombia.

Europe

In Europe, CNOOC Limited holds interests in oil and gas fields such as Buzzard and Golden Eagle in the U.K. North Sea, and holds a 10% equity interest in Arctic LNG 2 LLC in Russia. As of the end of 2022, the reserves and production in Europe reached 54.3 million BOE and 42,403 BOE/day, respectively, representing approximately 0.9% of the Company’s total reserves and approximately 2.5% of its production.

The U.K.

The Company’s asset portfolio in the U.K. North Sea comprises of producing projects and exploration projects, which mainly include: a 43.21% interest in the Buzzard oilfield, one of the largest oilfields in the North Sea, and a 36.5% interest in the Golden Eagle oilfield. The Company also holds 41.9%, 80.4%, and 79.3% interests in Scott, Telford, and Rochelle oilfields of STaR production blocks, respectively.

In 2022, the daily net production of the Buzzard oilfield increased to approximately 30,000 BOE due to the early completion of overhaul operations.

The Company also holds a 50% drilling operation interest in P2215 exploration block in the U.K. North Sea.

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Russia

The Company owns a 10% interest in Arctic LNG 2 LLC. The project is located in the Gydan Peninsula in the Arctic region of Russia. In 2022, the construction of the first LNG production line was progressing on schedule.