FAQ

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 65.21% of the Company’s shares.
What is the composition of CNOOC Limited Board of Directors?
●     CNOOC Limited’s Board currently consists of 11 members, including 4 non-executive directors, 2 executive directors, and 5 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 2021?What is the plan of future production growth and where will the growth come from?
●     In 2021, the Company achieved a net production of 572.9 million BOE, hitting a record high.
●     The Company’s net production targets for 2022, 2023 and 2024 are 600-610 million BOE, 640-650 million BOE and 680-690 million BOE, respectively.
●     Future production growth will mainly come from existing portfolio. The main contributors are Bohai and South China Sea in offshore China, and Guyana in overseas.
What is CNOOC Limited’s exploration result in 2021? What is the future exploration strategy?
●     In 2021, 16 new discoveries were made and 30 oil and gas structures were successfully appraised in China, while 6 new discoveries were made overseas, which would further underpin the resource base for its sustainable development.
●     We will adhere to the value-driven exploration philosophy so as to lay a solid reserve foundation for the Company’s sustainable development. We will strive to make breakthroughs in new areas, new fields and new types.
What is the reserve life and reserve replacement ratio in 2021?
●     The total proved reserves of the Company hit a record high, reaching 5.73 billion BOE by the end of 2021.
●     The reserve replacement ratio at the end of 2021 was 162%, remaining above 130% for 3 consecutive years.
●     The reserve life at the end of 2021 was 10 years, remaining above 10 for 5 consecutive years.
CNOOC Limited’s net profit hit a record high. What is the reason?
●     The Company’s net profit in 2021 was RMB 70.31 billion, hitting a record high.
●     With an average Brent price of US$ 70 per barrel in 2021, the Company’s net profit exceeded the record set in 2011 when oil price was US$ 111 per barrel. Thanks to the continuous growth in reserves and production and effective cost control, we were able to create more value and achieve high-quality development.
CNOOC Limited achieved effective control over cost in 2021. What is the reason? Will the cost be further reduced in the future?
●     Thanks to strict cost control measures, the Company’s all-in cost was US$29.49 per BOE in 2021.We continued to consolidate our cost competiveness despite the higher international oil prices.
●     The Company has established a comprehensive and effective cost control system. In the future, the Company will continue to implement stringent cost controls and maintain its cost competitiveness in the industry.
What is CNOOC Limited’s Capex budget for 2022 and how will the Capex play out in the future?
●     Capex budget for 2022 is RMB90-100 billion, which will strongly support CNOOC Limited's exploration, development and production workload in 2022 as well as its medium to long-term development.
●     The Company has many high-quality producing projects and new projects under construction, to support its medium to long-term production growth. Therefore, its Capex is expected to remain at a high level in the coming years.
CNOOC Limited declared a special dividend of HK$ 1.18 (tax inclusive) per share on April 28th. Does the special dividend include the 2021 year-end dividend? What’s the dividend policy of the Company?
●     In order to avoid the impact on the progress of RMB Share Issue of the Company, the Board decided to defer the recommendation for dividend at the end of March.
●     On April 21, 2022, the Company was successfully listed in Shanghai Stock Exchange. To fulfill our promise to the market, on April 28, the Company declared a special dividend of HK $1.18 (tax inclusive) per share, which includes the 2021 year-end dividend as originally planned, and the special dividend for the 20th anniversary of the listing in Hong Kong.
●     Since its establishment, the Company has paid close attention to shareholders' return and strives to share the results of its development with the shareholders, paying dividend twice a year. The Company always acts in the best interest of all the shareholders. Consistent dividend policies will be adopted in both A share market and Hong Kong stock market.
●     The Company has promised that subject to the approval by the general meeting of shareholders, from 2022 to 2024, the expected annual payout ratio will be no less than 40%, and the annual absolute dividend is expected to be no less than HK$ 0.70/share (tax inclusive).
CNOOC Limited declared a special dividend on April 28th, when will the dividend be paid on the RMB shares? How will the exchange rate of Hong Kong dollars against RMB be determined?
●     In accordance with the supervisory regulations, the arrangement on A-share dividend payment is yet to be disclosed. Please wait for further announcement.
●     Dividends paid on A-shares will be paid in RMB, at the exchange rate calculated using the average medium exchange rate of Hong Kong dollars against RMB as announced by the People’s Bank of China for the week immediately preceding the date of declaration of dividend at the annual general meeting.
Environmental, Social and Governance
What is CNOOC Limited’s vision in terms of social responsibility?
●     CNOOC Limited is committed to increasing the reserves and production levels, ensuring the stable supply of energy in the world, exploiting resources in a safe and environmentally-friendly way, actively developing green industries, responding to climate change, and striving to be a driving force for the supply of sustainable energy.
●     CNOOC Limited insists on operating in compliance with laws and regulations, adhering to a high standard of business ethics and corporate governance, strengthening independent innovation in science and technology, proactively participating in community-building and charity activities, so as to be a motivational force for joint progress of stakeholders and society.
What is CNOOC Limited’s concept of green and low carbon development?
●     Providing clean energy, continuously increasing gas supply capacity, pushing forward green and low carbon products, and improving the proportion of natural gas production.
●     Constructing green plants, driving energy efficiency and carbon reduction throughout the oil and gas field development process, and accelerating the construction of onshore power projects.
●     Developing green industries, developing new energy businesses selectively, and advancing offshore CCS and CCUS demonstration projects.
How does the company's board participate in ESG management?
●     CNOOC Limited has incorporated ESG management into corporate governance. The Board is the highest and decision-making body for ESG matters, and it takes overall responsibility for the Company’s ESG strategies and reporting. Its responsibilities include evaluating and identifying ESG risks, ensuring the establishment of appropriate and effective ESG risk management and internal control systems, and overseeing and managing ESG goals and work progress.
●     The Company has established an ESG Audit Committee, which is responsible for evaluating and auditing the Company’s ESG reports and submitting them to the Board. The director of this Committee is undertaken by the CEO, and its members are executives of the Company.
●     CNOOC Limited has also founded a working group for the ESG Audit Committee. The members of the working group include heads of the Board’s Office, QHSE Department, Human Resources Department, and other related departments. Following the instructions of the ESG Audit Committee, the working group is responsible for preparing ESG reports, regularly reporting progress to the Committee, and handling other tasks assigned by the Committee.
●     The Board receives a special report on safety and environmental protection from the Chief Safety Officer once a year and a report on risk control and compliance from executives at least twice a year. It also reviews corporate governance reports, working reports on internal control, risk management and compliance management, ESG reports, and the results of communication between stakeholders and analysis of material issues so as to ensure the whole-process involvement of the Board in ESG management and disclosure.
How does the company identify and manage climate change risks?
●     Climate change risk has been recognized as a core module for CNOOC Limited’s overall risk management framework.
●     The Risk Control Office is responsible for assessing the impact of climate change and works with QHSE and relevant business units to set up and carry out risk mitigation procedures.
●     We identify and analyze the risks and opportunities brought by climate change from policies and regulations, technologies, market, reputation, and physical, and respond with appropriate measures (please refer to our company website (www.cnoocltd.com) –“Social Responsibility-Environmental Protection-Response to Climate Change” for more information).
What is the carbon emission reduction measures of the Company and what will be the plans for the future?
●     Resolutely moving towards the goal of “carbon peaking and carbon neutrality” and adhering to the Measures for the Administration of Carbon Emissions Trading (for Trial Implementation), we are working on and improving our low carbon management systems.
●     We kept enhancing our energy-saving and low-carbon supervision and monitoring, participating in Carbon Quota Trading, developing CO2 Capture and Storage. The Company expands the natural gas business, increases the proportion of natural gas production, and actively develops offshore wind power business and onshore wind power and photovoltaics selectively, so as to push forward the green and low-carbon transition on an ongoing basis.
●     In 2021, by promoting technological transformation, we reduced 409 thousand tons of carbon emissions, effectively restraining the rapid growth in total carbon emissions. Our greenhouse gas emission reduction targets——by 2025, we plan to achieve a cumulative emission reduction of more than 1.5 million tons of carbon dioxide equivalent.