Product Supply

In 2019, CNOOC Limited enhanced efforts in exploration focusing on to domestic mid-to-large sized oil and gas fields in China, strengthened the value-driven exploration philosophy while actively developing overseas exploration. 23 new discoveries were made and 30 successful appraisals of oil and gas bearing structures were achieved throughout the year.

Among the new projects planned to come on stream in 2019, Huizhou 32-5 oilfield comprehensive adjustment / Huizhou 33-1 oilfield joint development project, Caofeidian 11-1/11-6 comprehensive adjustment project and Bozhong 34-9 oilfield in offshore China as well as Egina oilfield in Nigeria and Appomattox project in the U.S. Gulf of Mexico came on steam gradually.

More than 20 projects were under construction throughout the year. The development and construction of key projects progressed smoothly. Among which, Lingshui 17-2 gas fields have entered the development and construction stage, the construction progress for Liuhua 16-2 / Liuhua 20-2 oilfield joint development project accelerated significantly and construction of Bozhong 19-6 condensate gas field pilot development project achieved positive progress as well.

We are committed to implementing the policies on the utilization of natural gas. Optimizing the energy structure and developing a low-carbon economy are both important goals for us, as are promoting energy conservation and emission reduction and increasing the share of natural gas in the primary energy consumption structure. To support these goals, we continuously optimize our development and production plans and realize reasonable prices in the natural gas market. Helping users to promote and utilize clean energy will satisfy the residential demand for natural gas.

Product Quality

CNOOC Limited comply with national laws and regulations and strictly follow domestic and international quality management standards to produce and supply crude oil, natural gas and by-products. We hire professional third parties and conduct independent sampling, alongside joint quality testing with customers, issuing objective and truthful test reports based on the inspection results. Our focus on quality and safety extends beyond our products to delivery process. We ensure that by-product delivery vehicles meet safety and quality standards, thereby ensuring the safety and quality of sold by-products.

By the end of 2019, the Company 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

As cyber security risks escalate in the energy industry, the number of cyber-attacks cases targeting the industry is increasing. CNOOC Limited continuously improves its cyber security management system. We formulated the CNOOC Limited Information Security Management Measures (Trial), Link Security Configuration Management Regulations (Trial), CNOOC Limited Information Security Training Management Regulations, CNOOC Limited Information System Security Management Regulations (Trial), CNOOC Limited Employee Information Security Manual and other management regulations. Cyber security risk assessment mechanism, risk prevention and control system were established and effectively enhanced.

Technological Innovation

CNOOC Limited proactively implemented its “innovation-driven” strategy. In 2019, the Company continued to carry out critical core technology such as development of deep water oil and gas fields, offshore viscous oil fields, high temperature and high pressure and fields with low porosity and permeability.

Product Service

CNOOC Limited follows international industry practices, benchmarks against peer performance, and complies with international and domestic quality management systems to produce and supply energy products. We provide clients with qualified crude oil and natural gas products in accordance with international standards, national standards jointly published by the State Administration for Market Regulation and the Standardization Administration of China, contractual provisions on natural gas quality agreed with clients, and the latest crude oil standard of GB 36170-2018.

Supply Chain Management

CNOOC Limited made several advances in supply chain management by applying management systems including Procurement Management Measures, Supplier Management Methods, and Bidding Management Methods. We used these to handle two-tier supplier database management, along with bidding and procurement. They helped us implement whole-process dynamic management from the supplier's entry to exit by sharing supplier resource information and optimizing the supplier's performance assessment. By the end of 2019, we had nearly 3,400 suppliers, including about 270 overseas suppliers.