Dear shareholders, 

Time flies and new chapters unfold relentlessly. Looking back at the year of 2024, the world experienced an accelerated evolution of unprecedented changes unseen in a century. Global dynamics remained volatile, economic growth showed signs of weakness, oil prices fluctuated dramatically, and extreme climate events occurred frequently. In face of the macroeconomic uncertainties, CNOOC Limited stood united and made great efforts to increase reserves and production, focused on enhancing quality and efficiency while effectively mitigating risks and challenges. The Company achieved record highs in both reserves and production, continuously strengthened its cost competitiveness, and demonstrated an ever-increasing capacity for value creation, achieving remarkable results.

These results are attributable to the trust and support of our shareholders, the hand-in-hand cooperation of our partners, and, above all, the unremitting dedication of our entire staff. On behalf of the Board, I would like to express my sincere gratitude to every individual who cares and supports the development of the Company!

Reserves are the cornerstone of our development. We adhered to the philosophy of value-driven exploration and targeted at large and medium-sized oil and gas fields. With an emphasis on large-scale discoveries and efficient reserves, we made fruitful results in oil and gas exploration. We made a total of 11 new oil and gas discoveries in 2024, and established the one-trillion-cubic-meter gas region in the South China Sea. The proved reserves recorded a new high, with a reserve replacement ratio of 167%, and the reserve life remained at 10 years, laying a solid resource foundation for our future development.

Production growth is our unswerving pursuit. With the goal of “stabilising the production of existing oilfields, accelerating the development of new oilfields, expanding the development of low-permeability and heavy oilfields, and strengthening the development of natural gas fields”, we persisted to implement multiple measures to unlock the production potential, recording a new high in oil and gas production. We ensured stable and increased production of the producing oil and gas fields, enhanced the quality, speed and efficiency of engineering construction and development, and facilitated the successful launch of multiple key new projects. The oil and gas production reached 726.8 million BOE in 2024, representing a year-on-year increase of 7.2%.

We have always maintained a global perspective, continuously optimized asset portfolio, expanded overseas operations, and were awarded contracts for 10 blocks in Mozambique, Brazil, Iraq, becoming a global leading industry player.

We accelerated the development of new quality productive forces, and continuously enhanced our innovation-driven capabilities. Guided by innovative exploration theories, we made multiple significant discoveries, including Bozhong 22-6. Our “Shenhai-1” ultra-deep water natural gas field was awarded the first prize of China’s National Science and Technology Progress Award, and “Haiji-2” and “Haikui-1” achieved technological breakthroughs and innovation in developmental modes, further strengthening our core competitiveness. A number of intelligent oil and gas fields, represented by “Shenhai-1” and Qinhuangdao 32-6, were initially established, accelerating our digital and intelligent transformation significantly.

By adhering to the concept of green and low-carbon development, we continuously explored pathways for green transition. We actively implemented low-carbon emission reduction policies, and proactively addressed the challenges posed by climate change. By integrating the development of traditional industries with emerging industries, we steadily developed offshore wind power, and advanced research on deep-water wind power technologies. The onshore power project for the Bohai oilfields has been fully put into operation, and the level of green electricity substitution was constantly improved. At the same time, the industrialisation of CCS/CCUS was steadily advanced.

We adhered to the principle of ensuring high-quality development with a high level of safety, firmly upholding the bottom line of safety in development. We solidly promoted special actions for safety production, effectively responded to challenges posed by super typhoons such as “Yagi”, and maintained a stable production safety situation.

Creating values for shareholders is our mission. We continued our efforts to enhance quality, efficiency and upgrading initiatives, maintaining a high level of profitability. The Company achieved operating revenues of RMB420.5 billion and net profits attributable to equity shareholders of the Company of RMB137.9 billion. Our all-in cost was US$28.52 per BOE, further strengthening our cost competitiveness. To share the achievements of development with our shareholders, the Board of Directors has recommended a final dividend of HK$0.66 per share (tax inclusive) for 2024.

We continued to enhance our corporate governance and further diversified the Board’s composition. Since 2024, Mr. Zhou Xinhuai has been appointed as Vice Chairman of the Company, Mr. Wang Dehua has been appointed as a Non-Executive Director; Mr. Yan Hongtao has been appointed as an Executive Director and President; Ms. Mu Xiuping has been appointed as an Executive Director and Chief Financial Officer. Mr. Xu Keqiang and Ms. Wen Dongfen have no longer served as Non-executive Directors. In the future, all directors will continue to fulfill their duties with diligence and dedication, striving to promote the sound and sustainable development of the Company.

In 2025, we will consolidate the growth momentum of reserves and production, stimulate the vitality of technological innovation, further implement green and low-carbon strategy, continuously enhance quality and efficiency and actively practise ESG philosophy to ensure high quality and sustainable development of the Company. Meanwhile, the Company will as always prioritize shareholder returns. Subject to the approval by the general meeting on the proposed dividends for each year, the expected annual dividend payout ratio will be no less than 45% for the years 2025 to 2027. By adhering to the principle of returning to shareholders, the Company will adjust the dividend policy as needed.

Looking forward, we will remain steadfast in advancing high-quality development, enhancing shareholder returns, and creating even greater value. We sincerely invite all shareholders to continue partnering with us on this journey. Let’s work together to achieve a brilliant future!

Wang Dongjin    
Chairman
Hong Kong, 27 March 2025