Energy Supply

Product Supply

In 2022, the Company seized the opportunity and followed the trend, actively promoted the three major projects of increasing reserves and production, scientific and technological innovation, and green development, firmly implemented the action of improving quality and efficiency. The business performance has reached the best level in history.

We insist on putting exploration in the first place, continue to increase exploration investment, pursue sizable discovery and profitable reserves, obtaining a total of 18 new discoveries and evaluating 28 oil and gas bearing structures successfully throughout the year. In Chinese waters, we have obtained large and medium sized new discoveries such as Bozhong 26-6, Bozhong 19-2 and Baodao 21-1. In overseas, Guyana Stabroek Block made 10 more new discoveries, and the cumulative recoverable resources of the block reached approximately 11 billion barrels of oil equivalent. As of the end of 2022, the Company had net proven reserves of approximately 6.24 billion barrels of oil equivalent.

We insist on taking oil and gas production as the focus of work, anchor the annual production target, continue to strengthen production management, and efficiently organize project operations. In 2022, the net oil and gas production has reached 623.8 million barrels of oil equivalent, an increase of 8.9%, exceeding the annual oil and gas production target and hitting a new record high. Nine new projects were successfully put into operation, which strongly supported the production growth. We have strengthened the fine management of old oilfields, effectively controlled the natural decline rate in producing fields and maintained a high onstream rate. In order to strongly support its sustainable development, the Company has steadily and efficiently promoted the construction of new production capacity, with more than 40 projects under construction throughout the year. Thanks to scientific production and operation management, the Company continues to consolidate its cost competitive advantage.

Product Quality

We uphold the principle of "people, safety, integrity, foundation, innovation, quality first". Following these principles, we carry out quality improvement actions, identify quality risks comprehensively, refine quality management systems, cultivate a culture of quality, and continuously improve the quality of products.

Strictly adhering to laws and regulations such as the Regulations of the People's Republic of China for Product Quality Management, we have formulated the Policy for QHSE Management, the Measures for Quality Management and other internal management policies in accordance with domestic and international quality control standards and contractual quality requirements. We set up a full-time post of quality, safety and environmental protection as required. We invite third-party professionals to conduct independent sampling and undertake self-sampling and joint quality tests with customers to test the quality of our products and publish objective and truthful reports based on the results. In addition, we have strengthened supervision of customer transport of products to ensure that ships and vehicles for this purpose meet our standards, and ensure the safety and quality of the project of exporting products. In 2022, we conducted tests for crude oil, natural gas and by-products throughout the Company. The quality of our products remains stable and meets the national standards, without any major quality disputes.


Cyber Security

CNOOC have structured a cybersecurity framework featured by "one center, three lines of defense", established a cybersecurity management structure, defined cybersecurity goals and management principles, and achieved full-scope, dynamic, real-time monitoring of our information assets. Besides, we have improved our ability to guard against and defuse major cybersecurity risks in a pragmatic approach via special inspections and rectification and vulnerability tests to identify and rectify risks to continually enhance cybersecurity protection.

Technological Innovation

To achieve sci-tech self-reliance and self-strengthening at higher levels, we upheld the new development philosophy. In specific, we further promoted the innovation-driven development strategy, gave full play to our role as an innovation entity, strived to build strategic scientific and technological strength, and accelerated our pace towards the deep sea. In addition, we continued to advance the reform of scientific and technological system.

In terms of technological innovation and R&D application

·      China's first deepwater subsea production system was and applied in the Ledong block of Dongfang 1-1 gas field, breaking the international technology monopoly and marking a new level of core technology and equipment for the development of deepwater oil and gas resources in China.

·    China's first domestic shallow water Christmas tree has been successfully developed and applied, which has achieved a historic breakthrough in the subsea development in shallow waters, overcame the challenge in Bohai oil and gas field development, and was great significance for improving China's energy self-sufficiency rate.

·      The world's first large-scale development of offshore super heavy oil reserves was put into production. Some achievements of the thermal recovery technology system of super heavy oil horizontal well steam huff and puff in Bohai oilfield have reached the international advanced level. The successful application of this model will facilitate the development of over 100 million tons of super heavy oil in Bohai Bay Basin.  

·   China's first deep-sea floating wind power localization development and demonstration project has officially started construction. The key technologies adopted were independently developed by CNOOC Limited, which will promote the development of deep-sea floating wind power technologies in China.

·     Qinhuangdao 32-6 Oilfield, the first offshore intelligent oilfield in China, has created a new "intelligent, safe and efficient" offshore oil and gas operation mode. The production and operation of the oilfield was empowered by digital technology, greatly improving production efficiency and reducing operating costs.

·      The Company has made full use of digital technologies such as big data and robotics to build a production command center and remote control center that integrates land and sea. Among them, Enping Oilfield Cluster realizes unmanned and remote control of production during typhoon, which effectively guaranteed production operation and personnel and property safety.

In the future, CNOOC Limited will continue to develop and use scientific and technological innovation to drive the growth of its main business sectors, key tasks include

·       Vigorously tackle key science and technology projects.

·    Expand and improve the application of new scenarios for digital transformation, and accelerate the promotion of digital transformation and intelligent development.

·       Continue to deepen reform of science and technology systems and mechanisms to stimulate innovation.

Notable Achievements in International Scientific Research and Technological Innovation

     

Innovation Incentives and Intellectual Property Rights

We continue to implement targeted incentives towards major science and technology projects to stimulate the passion of scientific research personnel. The award evaluation and review mechanism has been continuously improved based on the Rules for the Selection of Science and Technology Awards. Under such a positive system, we have paid more attention to the grassroots personnel at the frontline of scientific research work and increased opportunities for them to get incentives, so as to help create a favorable environment for science and technology innovation.

We act in strict compliance with laws and regulations such as the Patent Law of the People's Republic of China and Law of the People's Republic of China on Promoting the Transformation of Scientific and Technological Achievements to maintain and protect our intellectual property rights. We refined the management of intellectual property rights by enhanced systems, clear requirements and more training. Besides, we developed targeted management improvement strategies based on the investigation and assessment of the creation, application, protection and management of intellectual property rights, laying a foundation for advancing the improvement of lifecycle management of intellectual property rights. In 2022, the Company won a total of 15 technology awards at provincial and ministerial levels or above.


Supply Chain Management

In 2022, in accordance with laws and regulations such as the Law of the People's Republic of China on Tenders and Bids, CNOOC Limited revised and released the Supply Chain Management Policy and related management measures and implementation rules, further standardizing the management of purchasing and supply chain, warehousing logistics, import and export, purchase contracts fulfillment, digitalization, performance and compliance, to strengthen overseas purchase management, mitigate overall supply chain management risk and avoid suppliers’ ESG risks. In addition, we formulated the Development Scheme for Supplier Resource Database of CNOOC Limited and the Guiding Opinions on the Green Development of Purchasing and Supply Chain, optimizing the supplier resource management mechanism and green development, deepening cooperation with key suppliers, gradually building high-level and high-quality supplier resource database, and accumulating quality supplier resources in key areas such as exploration and development, project construction, new energy and operation safety to promote the construction of green supply chain and improve the supplier quality.