FAQ

Company Profile:
Where is CNOOC Limited listed and what is its stock code?
●     CNOOC Limited is listed on three stock exchanges.
●     The Company’s common stock is traded on the Hong Kong Stock Exchange under the stock code 00883.
●     CNOOC Limited’s American Depositary Receipts(ADRs) are traded on the New York Stock Exchange and the Toronto Stock Exchange
       under the stock codes CEO and CNU, respectively.
What is CNOOC Limited’s core business and where are its assets distributed?
●     CNOOC Limited is China’s largest offshore crude oil and natural gas producer and is also one of the world’s largest independent oil
       and gas exploration and production companies. It is principally engaged in the exploration, development, production and sale of oil and
       natural gas.
●     The Company’s core operation areas are Bohai, the Western South China Sea, Eastern South China Sea and East China Sea in offshore
       China. The Company also has oil and gas assets in Asia, Africa, North America, South America, Oceania and Europe.
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 64.44% of the Company’s
       shares.
What is the composition of CNOOC Limited Board of Directors?
●     CNOOC Limited’s Board currently consists of 9 members, including 2 executive directors, 3 non-executive directors and
       4 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 Aa3.
What is CNOOC Limited’s vision in terms of social responsibility?
CNOOC Limited strives to become:
●     The driving force in sustainable energy supply
●     The leader in promoting clean, healthy and environmentally friendly business development
●     The motivating force in promoting social progress together with various stakeholders
What is CNOOC Limited’s dividend policy?
●     The Company will continue to follow the established dividend policy, and constantly focus on shareholder return. Our dividend
       distribution will continue to consider factors such as current and future earnings, financial condition, capital expenditure plans and
       business development progress;
●     At the same time, we will benchmark international peers’ dividend payment.
Operation and Finance:
What’s CNOOC Capex plan in 2017? Based on what oil price assumption?
●     The Company’s total capital expenditure in 2017 will be in the range of RMB60.0 to RMB70.0 billion, representing a 22.4-42.9% increase compared
       with RMB49.0 billion in 2016.
●     The Capex spending is based on the assumption of US$51 per barrel of Brent benchmark oil price, up from US$45.13 per barrel, the average price
       of Brent crude oil in 2016.
●     Taking a macro view of the oil and gas industry, our peers are also increasing their Capex.
●     The increased Capex will vigorously support our full workload for exploration, development and production in 2017.
●     While raising our Capex, the Company will continue to maintain a prudent financial policy, improve capital efficiency, optimize asset
       portfolio and focus on the return on assets.
What is the company exploration results in 2016? How will the Company guarantee its reserve replacement and sustainable development?
●     The company continued to maintain a reasonable ratio of exploration investment and ensured the mid to long-term sustainable development with a
       high workload. The exploration Capex was RMB9.2 billion, and we drilled 129 exploration wells.
●     During the year, the Company has achieved 14 discoveries and successfully appraised 25 oil and gas structures. Of these, we have found 12
       discoveriesand appraised 19 oil and gas structures in offshore China, and 2 new discoveries and appraised 6 oil and gas structures overseas.
●     Every year the Company has made many discoveries in its core areas - offshore China in recent years. The future growth potential will be immense.
●     Important overseas oil and gas discoveries including Liza, and Owowo etc. have been found together with its overseas partners.
●     In 2017, the Company will keep on following value-driven exploration philosophy attach equal importance to the quantity and quality of oil and
       gas resources, lean toward high-return and quick-monetization areas, to ensure the Company’s sustainable growth in the mid to long-term.
The Company has increased capital expenditure in 2017, but why has the production target not grown accordingly? Can future projects support the Company’s production growth?
●     In 2017, the Company’s production target is 450-460 million BOE.
●     Under low oil price environment, the Company will pursue quality growth, increase profitability-oriented production volume and bring better return
       for investors.
●     Taking a macro view of the oil and gas industry, capex spending and production volume are not linear relationship. The company’s production usually
       comes from: existing baseline production, contributions from new projects and infill drilling programs.
●     Approximately 20 projects are under construction and numerous new projects will come on stream in the next few years.
●     These projects are expected to provide strong support for the future production growth of the Company.
What is the Company’s current cost status? Will future costs remain at the same level as in 2016? How much room can be expected for further cost reduction?
●     Over the past 4 years, the Company's all-in cost has dropped from its highest level of US$45.02 per BOE in 2013 to US$34.67 per BOE in 2016. Total
       operating expenses have dropped 18.2% to 5.16 billion RMB. The operating expenses per BOE have significantly declined by 37.8% to US$7.62.
●     Cost control will remain one of the Company’s focuses. However, the easier part has been done and it is difficult to further cut the rigid part of
       cost. Therefore, we see limited room for further cost reduction.
●     With the priority of ensuring the quality, health, safety and environmental protection, we will effectively control the cost and enhance the
       quality and efficiency of our growth. The Company will further lower costs and enhance efficiency by fully utilizing the market mechanism and
       by combining innovations in technology innovations, management and business model.
What is CNOOC Limited’s dividend policy? Will the Company adjust dividend policy in the future?
●     The board has proposed a year-end dividend of HK$0.23 per share (tax inclusive).
●     Since its establishment, the Company has always been focus on shareholders return. The Company does not have a fixed payout ratio, Its dividend
       payment is mainly based on four factors: current and future earnings, financial condition, capital expenditure plan, and business
       development progress. The Company will also benchmark with international peers.
What are the Company’s overseas assets distributions? Will the Company consider any overseas mergers and acquisitions or asset disposals?
●     After years of development, the Company has established a diversified asset portfolio overseas covering over 20 countries and regions.
●     Currently, the Company’s overseas oil and gas assets, reserves, production and oil and gas sales revenue accounted for 60%, 37%, 35% and 28%
       of the total respectively.
●     The Company has been actively involved in global top-tier projects and has become one of the global leading players within the industry.
●     The Company has always followed the established value-driven strategy in terms of mergers and acquisitions, and reviewed opportunities from
       three aspects, namely the 3R (Resources, Return and Risk)
Others:
What is CNOOC Limited’s opinion on the reform of compensation policies?
●     We have taken note of the relevant reform plans.
●     The Company has formulated fair and competitive compensation policies after taking into account the industry standard and current market trends.

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