CNOOC Limited always aim firmly to increase reserves and production of oil and gas, optimize products and services, and promote technological innovation. We endeavor to guarantee a stable supply of oil and gas by focusing on creating a stable and sustainable supply chain.
Product Supply
In 2024, CNOOC Limited continued to increase reserves and production, adhered to enhancing quality and efficiency and reducing cost, and achieved significant results in technological innovation and green development, consolidating a solid foundation for long-term sustainable development.
The Company adhered to the goal of searching for large and medium-sized oil and gas fields, highlighted large-scale discoveries and efficient reserves, and achieved fruitful oil gas exploration results. During the year, we have made 11 new discoveries and have successfully appraised 30 oil and gas-bearing structures. In China, we discovered Lingshui 36-1, the world's large gas field in ultra deep-water and ultra_shallow-play with a proved in-place volume of 100 billion cubic meters, and Huizhou 19-6, the largest clastic rock oilfield in the Eastern South China Sea. Overseas, we made a new discovery in Guyana and successfully obtained 10 blocks in Mozambique, Brazil and Iraq, acting as the operator for 7 of the blocks, further expanding the global exploration business area. By the end of 2024, the Company's reserve replacement ratio reached 167% while the reserve life remained at 10 years.
The Company set its sights on the annual production target, implemented multiple measures to tap into the potential of production, efficiently promoted the task of capacity construction, accelerated the promotion and application of "Excellent & Intelligent" drilling and completion mode and engineering standardization, and accelerated the construction and production of key projects. At the same time, the Company developed production growth measures and ensured the stable and growing production in order to maintain the natural decline rate of domestic offshore oilfields at a low level. A number of projects were put into production ahead of schedule. More than 60 projects were under construction throughout the year, and the development and construction of key projects progressed smoothly. The Stabroek block in Guyana is expected to have a production capacity of 1.7 million barrels per day by 2030. Thanks to refined cost management, We continued to consolidate our cost competitiveness.
In 2024, oil and gas net production reached 726.8 million BOE, year-on-year growth of 7.2%. In the future, we will continue to focus on finding large and medium-sized oil and gas fields, continuously consolidate the foundation of increasing reserves and production resources, orderly promote the construction of key projects, steadily advance green and low-carbon development to ensure the stable and high-quality development of the Company.
Product Quality
CNOOC Limited upholds the principle of "people, safety, integrity, foundation, innovation, quality first." Following this principle, 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 our products.
The Company complies with the Product Quality Law of the People's Republic of China and have revised and improved internal management systems including the Measures for Quality Management, Detailed Rules for Reporting Quality Abnormalities, and Quality Management Team Guidelines by strictly following the domestic and overseas quality management standards and the quality standards as stipulated in the contracts. During the reporting period, the Tianjin Branch, Shenzhen Branch, and the Research Institute obtained ISO 9001 Quality Management System certification. This system covers key business areas, including research and design, engineering construction, and exploration and development. Through internal audits and management reviews, the Company continuously drives improvements within the system.
The Company invites renowned domestic and international third-party professional institutions to sample and test crude oil, natural gas and by-products, ensuring quality management is implemented in an open, transparent, compliant, and stringent manner. In 2024, the quality of our products remained stable and met the national standards, no major disputes over product quality have occurred, and we have not received any customer complaint regarding the quality of our products.
Cybersecurity
CNOOC Limited are committed to protecting customer privacy and ensuring data security by abiding by the Cybersecurity Law of the People's Republic of China, the Data Security Law of the People's Republic of China, and the Personal Information Protection Law of the People's Republic of China and other laws and regulations. We have established internal policies including the Cybersecurity Management Measures and the Cybersecurity Incident Management Rules. We have structured a cybersecurity framework which can be summarized as "one center, three lines of defense", defining clear cybersecurity targets and management principles. These apply to all employees, ensuring comprehensive cybersecurity governance. Through dynamic and real-time monitoring of network assets, we effectively prevent, detect, and respond to cybersecurity incidents, ensuring the security of information assets and business continuity.
In 2024, no data security breaches, or customer privacy leaks were recorded. We successfully completed the cybersecurity classification certification for 29 Level 3 and Level 2 information systems at our headquarters, achieving a 100% certification rate for all Level 3 systems.
Supply Chain Management
In 2024, CNOOC Limited undertook a supply chain reform guided by the principles of "separation of management and execution", the direction of "centralization", the goal of "collaborative demand and procurement", and the rigid support of "digital intelligence." The Company strengthened centralized procurement, centralized bidding, and unified supplier management while promoting the integration of procurement and warehousing to establish a highly transparent and ethical supply chain management model. Focusing on the goals of centralization and specialization in supply chain operations, CNOOC Limited optimized supply chain processes and management by incorporating ESG assessment criteria into supplier evaluations. Additionally, we enhanced digital intelligence capabilities to advance a responsible supply chain.
Green Supply Chain
CNOOC Limited has established the Guiding Opinions on Green Development of Procuring and Supply Chain to drive the implementation of a green and low-carbon strategy, accelerating the green transformation and high-quality development of its supply chain. We aim to build a preliminary green development system of procuring and supply chain by 2025 and a CNOOC-specific green supply chain model by 2028.
The core initiatives of green supply chain construction are, first, to expand green supply resources, second, to encourage green procurement, and third, to promote green warehousing and logistics.
In 2024, a total of 4,124 suppliers were certified under quality, environmental, and occupational health and safety management systems, achieving a 100% certification rate.
Open and Win-win Supply Chain
CNOOC Limited actively promote the development of a modern industrial chain for deepwater oil and gas equipment, establishing an organizational management model of industrial chain that integrates core support with collaborative growth. We are committed to fostering a mutually beneficial industrial ecosystem for deepwater oil and gas equipment. By leveraging its three key advantages--demand-driven innovation, organizational platforms, and integrated innovation, CNOOC Limited promotes collaborative development among supply chain enterprises and the clustering of industrial resources. We actively support the growth of small and medium-sized enterprises (SMEs), continuously cultivating SMEs with core competitiveness and unique advantages. Additionally, CNOOC Limited drives the transformation and upgrading of the marine energy industry, advancing the high-end, intelligent, and green development of deepwater oil and gas equipment while fostering the growth of emerging marine energy sectors.
CNOOC Limited places great emphasis on and actively implements a localized procurement strategy outside of China, fostering deeper partnerships with outstanding local suppliers.
Clean Supply Chain
The Company actively promote the Regulations on Handling Non-Compliant Suppliers, which clearly define supplier management and compliance standards. The Company has strengthened management for non-compliant suppliers and their affiliated enterprises, ensuring strict enforcement of relevant regulations. By building a clear, efficient, and transparent procurement and supply chain system, CNOOC Limited aims to enhance supply chain oversight and governance. Irregular compliance inspections are conducted, and violators will face penalties such as prohibition or transaction restrictions.
In 2024, the Memorandum on Integrity for suppliers signing rate reached 100%.
Supplier Management
The Company adheres to the Law of the People's Republic of China on Tenders and Bids and the Regulations for the Implementation of the Tender Law of the People's Republic of China, and has established the Supply Chain Management System, along with revised supporting management measures and details such as the Supply Chain Procurement Management Measures and the Related Party Transactions Procurement Management Implementation Rules. These systems and regulations comprehensively standardize the procurement process and strengthen the management and control of key issues. In addition, the Company is committed to improving procurement competitiveness by increasing the transparency of sourcing. During the reporting period, we achieved a 100% open procurement rate.
In 2024, the Company has 4,124 suppliers in the database, including 3,903 domestic suppliers and 221 overseas suppliers.
Technological Innovation
Technological innovation is the primary driving force for corporate development. CNOOC Limited focuses on the country's major strategic needs, deeply implementing the innovation-driven development strategy. We concentrate on key areas such as oil and gas exploration and development, green and low-carbon technologies, and digital and intellectual transformation, continuously strengthening core technology research and development, and enhancing our technological innovation capacity. We aim to systematically improve core competitiveness and empower high-quality development through high-quality technological offerings, striving to create a positive ecosystem where technology leads industry transformation and innovation contributes to social development.
CNOOC Limited invested RMB 4.507 billion in innovation.
Scientific and Technological Innovation Achievements
· CNOOC Limited's independently designed and developed the country's first cylindrical Floating Production Storage and Offloading (FPSO), Haikui No.1, and Asia's first deepwater jacket platform, Haiji No.2. These were successfully included in the "State-owned Assets Supervision and Administration Commission's Top Ten Pillars of A Great Power of Central Enterprises in 2024," marking that China's design, construction, and installation capabilities for deepwater oil and gas equipment have reached a world-class level.
“Haikui No.1” “Haiji No.2”
· CNOOC Limited's 2024 Science and Technology Awards
- 2 National Science and Technology Awards
Key Technologies and Applications in the Development of the "Deep Sea No. 1" Ultra-Deepwater Gas Field won the National Science and Technology Progress Award First Prize;
Theoretical and Technical Innovations in Deep Oil and Gas Exploration in the Bohai Extension-Slip Compound Fault Zone and Major Discoveries won the National Science and Technology Progress Award Second Prize
- 14 Provincial and Ministerial Science and Technology Awards, including:
Theoretical and Technical Innovations and Practices in Deep and Ultra-Deep Compound Buried Hill Oil and Gas Exploration in Bohai Bay won the Tianjin Science and Technology Progress Special Award
- 2 individuals received the "Youth Technology Awards" of the 33rd Sun Yueqi Energy Science and Technology Award
Digital and Intellectual Transformation
· CNOOC Limited devotes efforts to establish two benchmark smart oil and gas fields, one in the south and one in the north, to lead the industry in digital transformation. In the South China Sea, CNOOC Limited has developed the world's first ultra-large deepwater semi-submersible production and storage platform with remote-controlled production capability, "Deep Sea No.1". By integrating digital systems, the platform has increased its annual effective production time by 10 days, enhancing overall gas field efficiency by approximately 3%, and boosting annual natural gas supply by 60 million cubic meters; In the Bohai Sea, we have built China's first offshore smart oilfield--Qinhuangdao 32-6 Oilfield. With advanced signal transmission and digitalized support systems, operation personnel can access real-time production data 24/7, enabling intelligent oilfield management.
· CNOOC Limited 2024 Digital and Intellectual Transformation Awards
- "Deep Sea No.1" selected as an excellence-level smart factory (first batch), awarded by the Ministry of Industry and Information Technology
- AI-driven breakthrough innovation in offshore oilfield development and production recognized as a typical case of AI-enabled new industrialization (2024), awarded by the Ministry of Industry and Information Technology
- Exploration and development data governance project won first prize in the Data Element Application Innovation Competition, awarded by China Information Association
Intellectual Property Protection
We place great emphasis on intellectual property management and strategic planning by revise and improve the Intellectual Property Management Measures and the Patent, Software Copyright, and Proprietary Technology Management Measures, establishing a comprehensive system to regulate the creation, utilization, protection, and management of intellectual property.
