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 8 members, including two executive directors, two non-executive directors and four
       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 for 2017 will be in the range of RMB60.0 to RMB70.0 billion, representing a 19.3-39.2% increase from
       RMB50.3 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 too are increasing their Capex.
●     The increased Capex will vigorously support our full workload for exploration, development and production in 2017.
●     While raising its Capex, the Company will continue to maintain a prudent financial policy, improve its capital efficiency, optimize its asset
       portfolio and focus on the return on assets.
What is the Company’s cost status in 2016?
●     In 2016, the Company continued to maintain stringent cost control and achieved marked results.
●     Cost control will remain one of the Company’s focuses. However, the easier part has been completed and it is difficult to further cut the rigid
       part of cost. Therefore, we see limited room for further cost reduction.
●     We will communicate further details at our 2016 annual results announcement at the end of March.
Do you see a major assets impairment for 2016?
●     The impairment loss in the first half of 2016 was RMB10.36 billion for the first half of 2016, mainly coming from our assets in North America,
       Europe and Africa, primarily due to the revision of the estimation for the oil price forecast and the adjustment in the operating plan
       for oil sand assets in Canada.
●     We will have to review the impairment test results to decide the need for further assets impairment. We will also have to take into consideration
       our oil reserves and, in particular, the long-term price of oil. The Company will communicate relevant information at the time it announces
       its 2016 annual results.
Can future projects support the Company’s production growth?
●     Approximately 20 projects are under construction and numerous new projects will come on stream in the next few years.
●     The future projects are expected to provide strong support for the growth of the Company’s production.
Can the Company complete the annual reserve replacement target for 2016? Does the Company worry that reserve life is getting shorter?
●     In 2017, the capital expenditure for exploration will account for around 18%. The Company plans to drill 126 exploration wells, representing
       a slight increase compared to 2016.
●     In 2017, the Company will follow a 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 medium to long term.
●     The Company has found several new discoveries in offshore China in recent years and together with its overseas partners, it has found important
       overseas oil and gas resources including Liza, Owowo, and Libra etc.
●     Especially, many discoveries are made every year in core areas of offshore China. We are still at an earlier stage of exploration, meaning that
       compared to other areas, offshore China is relatively unexplored and still have vast exploration potential.
Will the Company conduct overseas M&A under the current oil price environment? Which areas is the Company interested in? Has the Company found good M&A opportunities?
●     The Company has always followed the established strategy of value-driven acquisitions and reviews the opportunities from three aspects, namely
       the 3R (Resources, Return and Risk).
●     After years of overseas development, CNOOC Limited has basically completed the global deployment of assets.
●     In future, the Company will focus on the organic development of overseas assets and continue to optimize its portfolio.
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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