Overseas Social Responsibility

Based on the CNOOC International Limited Standard for Community Investment released by CNOOC Corporate Community Investment Committee (CCIC), a community strategic investment budget plan shall be developed every year focusing on community prosperity and safety, education development, support for indigenous communities, and green and low-carbon development. In 2023, CNOOC International contributed USD 6.926 million for overseas community investment, covering more than 50 public welfare projects across 8 countries. This was done to improve the local livelihood in each operation area, support the development of indigenous communities, and contribute China's efforts to global sustainable development.

Public Welfare and Charity Activities

·      Support for Education and Ambition:Together with other Chinese enterprises in Uganda, CNOOC Uganda participated in donations and visits to local charity schools for disabled orphans, and donated USD 500 thousand for infrastructure upgrades, the largest donation by Chinese enterprises to education in Uganda so far.

·      Care for the Local People’s Wellbeing:In order to neutralize the threat of mines left over from the war in the local community, CNOOC Iraq has joined hands with other parties to establish a thorough demining procedure standard and taken multiple actions, including community demining, campus demining and demining lectures. The Iraqi government endorses CNOOC Iraq for its remarkable demining achievements, and the residents’ safety awareness has been improved. In September 2023, CNOOC Iraq received a letter of commendation from the Directorate of Mine Action (DMA) of the Iraqi Ministry of Environment, and the letter spoke highly of the contribution of CNOOC Iraq to demining.

·      Medical Treatment and Health Services:CNOOC Iraq carries out health education, disease prevention and other diagnostic and medical services for local residents, including free clinic treatment for the community, and health education and training, so as to help the local villagers improve awareness of disease prevention and obtain medical and health knowledge, effectively reducing health risks.

·      Joint Efforts in Environmental Protection:CNOOC UK has launched environmental education projects for the younger generation in local communities around the river to help them learn about river management and nature conservation, thus motivating them to pursue careers in nature and science and contribute to environmental protection.

Improve Community Connection Mechanism

The Company has been actively listening to the voices of local residents and has established various communication and complaint mechanisms to ensure effective cross-cultural communication, build trusting relationships with local communities, actively undertake social responsibilities, and strive to achieve sustainable business development.

·      Based on the culture and lifestyle of local residents, each regional subsidiary sets up special posts or working groups within the Company to be responsible for communication with local residents, such as appointing local employees as community coordinators to be responsible for communication work and setting up charity committees and oil and gas consulting committees, which are specifically responsible for dealing with community relations or social issues arising from project activities, establishing community connection and cooperation mechanisms according to local conditions.

·      The Company held regular meetings following a fixed agenda with government officials, representatives of communities and indigenous people, local enterprises, regional resettlement committees or local councils, conducted company field visits, held public open days, and set up electronic mailboxes to facilitate communication with local communities.

Conduct Community Impact Assessments

The Company fully respects the human rights of local residents and protects the local indigenous culture, traditional way of life and the local natural environment. We follow the principle of Free, Prior and Informed Consent (FPIC)10, cooperate with local governments, NGOs, community representatives, etc., and establish diversified communication channels. We fully understand the opinions and suggestions of local residents on the Company’s production and construction activities through conversations, complaint resolution procedures, and community impact management measures, as well as assessment of the projects' impact on the community in a timely manner and identification of community-related potential risks and opportunities.

In accordance with the requirements of relevant laws and regulations in the countries and regions of operation, the Company conducts thorough community impact assessment of the whole life cycle of the project and continues to improve pre-project planning, project construction and operation monitoring, and post-completion restoration and compensation, so as to reduce the impact on the local community.

CNOOC Limited Applied FPIC Principles to Conduct Community Impact Assessment

After implementing a project in Guyana, the team will visit the local community within six months to collect in-person feedback or complaints. When conducting community investment activities related to American Indians, CNOOC Guyana engages with villagers through dialogue and face-to-face meetings, proactively visits villages and holds meetings with village councils, village chiefs, heads of government agencies and ministers to ensure that the views of all stakeholders are fully taken into account.

In Indonesia, with the vision of “becoming a good neighbor to the local community”, the Company adopts a bottom-up community development planning mechanism, where the local community can propose a cooperative development plan with the Company according to their needs.

In Uganda, the Company strictly follows local regulations and international standards, conducts environmental and social impact assessment in advance for the project located in the environmentally sensitive area of Lake Albert, and practices environmental monitoring, invasive species management and critical species monitoring during the project development to ensure project compliance and to minimize environmental impact and protect biodiversity. Oversight and third-party monitoring and auditing of all operations were also in place.

*FPIC:Free, Prior, and Informed Consent is a specific right granted to Indigenous Peoples recognised in the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), which aligns with their universal right to self-determination. FPIC allows Indigenous Peoples to provide or withhold/ withdraw consent, at any point, regarding projects impacting their territories. FPIC allows Indigenous Peoples to engage in negotiations to shape the design, implementation, monitoring, and evaluation of projects.