CNOOC Limited always aims 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.
As a pioneer in China's offshore oil and gas industry, CNOOC Limited focuses on ensuring stable energy supply while actively pursuing innovation and transformation. We commit to advancing digitalization and intelligent development to continuously improve our capacity to ensure stable supply of products and enhance the quality of our services.
CNOOC Limited advanced reserve expansion and production growth in 2025 with determination and concrete action. It accelerated innovation with a strong sense of urgency. It strengthened safety and environmental protection with a heightened sense of responsibility. It also implemented practical measures to reduce costs and enhance efficiency. These efforts laid a solid foundation for long-term sustainable development.
The Company remained focused on discovering medium- and large-sized oil and gas fields. It continuously increased investment in risk and frontier exploration. Integration between exploration and development was fully advanced. As a result, exploration delivered substantial results. During the year, six new discoveries were made, with? a total of 28 oil- and gas-bearing structures successfully appraised. In offshore China, new discoveries included Longkou 25-1, Caofeidian 22-3, Jinzhou 27-6, Huizhou 21-8, Weizhou 10-5 and Weizhou 10-5 South. Overseas, two oil and gas fields Lukanari and Ranger in the Stabroek Block in Guyana were successfully appraised. In addition, four new exploration projects were secured in Iraq, Kazakhstan and Indonesia.
CNOOC Limited upheld production maximization as a core objective. Leveraging standardized engineering construction and intelligent drilling and completion technologies, the Company achieved simultaneous improvements in the quality and efficiency of productivity construction. Several key projects commenced production ahead of schedule. Fifteen standardized engineering application projects delivered notable results, accelerating productivity construction by 12%. Sixteen new projects were successfully brought on stream. These included the Bozhong 26-6 Oilfield Development Project (Phase I) and the Kenli 10-2 Oilfield Group Development Project (Phase I) in offshore China, as well as the Buzios 7 Project in Brazil and the Yellowtail Project in Guyana. The Company strengthened lean management of drilling and completion operations. It applied integrated technology portfolios featuring fewer wells with higher production. Demonstration projects for intelligent drilling and completion were implemented, increasing project execution speed by 26%. During the year, more than 80 projects were under construction, with steady progress in development activities.
The Company continued to enhance its development capabilities. It effectively controlled the natural decline rate of producing oilfields. Reserve utilization and recovery rates were further improved. These measures ensured stable and increasing output from producing oil and gas fields. In 2025, the Company’s net oil and gas production reached 777.3 million barrels of oil equivalent, representing a year-on-year increase of 7.0%. Production has maintained growth for consecutive years. Net natural gas production reached 1,037.3 billion cubic feet, up 11.6% year on year.
CNOOC Limited upholds the quality principle of pursuing stakeholder satisfaction and committing to high-quality development, and the quality objective of achieving excellence and world-class leadership. Following this principle, we carry out quality improvement actions, identify quality risks comprehensively, refine quality management systems, cultivate a quality culture, and continuously improve the quality of our products.
We comply with relevant national laws and regulations including the Product Quality Law of the People's Republic of China and have established internal management systems including the Measures for Quality Management, the Detailed Rules for Reporting Quality Abnormalities, and the Quality Management Team Guidelines. Product quality control is rigorously implemented in strict accordance with internationally accepted standards and nationally promulgated quality standards.
During the reporting period, the Tianjin Branch, Shenzhen Branch, Hainan Branch, and the Research Institute obtained ISO 9001 Quality Management System certification. This system covers key business areas, including research and design, engineering construction, exploration and development, and storage leasing. Through regular internal and external audits, as well as management reviews, the Company continuously drives improvements within the system.
The Company conducts regular customer visits to communicate product quality control performance, understand customer needs regarding products and services, and drive continuous improvement in quality management. We also engage reputable third-party professional testing institutions, both domestic and international, to sample and test crude oil, natural gas, and by-products, implementing quality management in an open, transparent, compliant, and rigorous manner. In 2025, our product quality remained stable and met applicable national standards or contractual requirements. No major quality disputes occurred, and we received no customer complaints related to product quality. In case of any quality complaint, we will proactively communicate with customers and properly resolve the issue in strict accordance with internationally accepted standards, relevant national standards for crude oil and natural gas, and the provisions stipulated in sales and purchase contracts.
CNOOC Limited conducted targeted training for offshore crude oil and natural gas sales personnel as well as all on-site coordination staff on offshore crude oil quality testing and measurement and on-site sampling procedures for natural gas and by-products. The training covered quality awareness, quality standards, sampling control procedures, inspection methods, and related topics, comprehensively strengthening employees’ quality control awareness.
In 2025, our product quality remained stable and met applicable national standards or contractual requirements. No major quality disputes occurred, and we received no customer complaints related to product quality.
CNOOC Limited complies with the Cybersecurity Law of the People’s Republic of China and the Data Security Law of the People’s Republic of China and other applicable laws and regulations to safeguard cybersecurity. The Company has formulated internal policies including the Cybersecurity Management Measures, the Rules for Cybersecurity Incident Management, the IT Asset Management Rules, the Rules for Staff Cybersecurity, the Network and Information System Operation Security Management Rules, the Industrial Control System Security Management Rules, and the Third-party IT Service Security Management Rules. It has established a “one center, three lines of defense” cybersecurity framework, clarified cybersecurity objectives and management principles, and designated the Chairman as the primary person responsible for cybersecurity. The management systems and rules cover all employees. In 2025, the Company recorded zero data security incidents.
CNOOC Limited has established a business continuity plan covering network emergencies such as cyberattacks and system failures. The Company ensures network reliability through regular IT infrastructure audits, vulnerability analyses, and simulated cyberattack exercises. At the same time, the Company requires its employees to submit relevant reports when they identify potential data security risks. The Technology and Digital Intelligence Department handles these reports, implement targeted corrective measures, and continuously enhance network security protection capabilities.
The Company monitors network assets dynamically and effectively analyzes, warns against, and responds to cybersecurity incidents. This approach ensures information asset security and business continuity. CNOOC Limited continuously enhances compliance oversight and cybersecurity resilience. We conducted on-site cybersecurity inspections across multiple subsidiaries throughout the year, assessing the implementation of network security management and critical information system protection. Identified vulnerabilities were promptly addressed to strengthen overall security awareness and defense capabilities. Additionally, we have institutionalized cybersecurity risk assessments, proactively identifying risks and weaknesses while providing targeted mitigation and prevention strategies to enhance protection capabilities and emergency response capabilities.
In 2025, the Company conducted 4 cybersecurity training sessions with over 250 person-time. It completed security evaluations for 15 Level-3 information systems at headquarter and confidentiality assessments for 10 information systems.
CNOOC Limited strictly complies with the Personal Information Protection Law of the People's Republic of China. The Company rigorously protects customer privacy and has formulated the Cybersecurity Management Measures, which were updated this year to include personal information protection requirements. CNOOC Uganda follows local laws and regulations and has established the Customer Privacy Protection Policy, which has established a data management framework that clarifies role responsibilities and standardizes the collection, processing, storage, and destruction of personal data. These measures ensure data security and protect data subjects' rights.
The Company regularly conducts employee privacy protection training to strengthen privacy awareness. It also strictly manages partners by including confidentiality clauses in cooperation contracts.In 2025, the Company experienced no customer privacy breach incidents.
In 2025, CNOOC Limited continued to press ahead with the 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 further optimize the supply chain management system and 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.
Supplier Management
The Company complies with 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. It has formulated the Supply Chain Management System to improve the supply chain framework, standardize procurement processes, and strengthen control over important matters. The Company is committed to enhancing procurement competitiveness and increasing open sourcing efforts. During the reporting period, 1,385 new suppliers were added. The Company continued to implement the whole process management of suppliers, covering supplier registration and admission, classification and grading, qualification appraisal, selection, performance evaluation and withdrawal. The Company strengthened the supplier performance assessment management, promoted the application of assessment results in bid evaluation, and established a unified supplier performance assessment evaluation standard, achieving an annual dynamic supplier performance evaluation coverage of 100%. Suppliers who failed the annual performance evaluation were removed from the supplier list. In 2025, the company's supplier base within the warehouse consisted of 5,509 entities, among which 5,364 were Chinese suppliers and 145 were overseas suppliers.
Equal Treatment of SMEs
The Company treats all suppliers equally. It does not use registered capital or workforce size as thresholds in the bidding process. It settles payments to small and medium-sized enterprises (SMEs) on time to avoid burdening them. The Company has also formulated support policies for SMEs, including rent reductions, margin alternatives, and financing support, to provide appropriate assistance to small and medium-sized suppliers. In 2025, the Company's accounts payable (including bills payable) balance was RMB 59.631 billion. The Company had no overdue payments, including no overdue payments to SMEs.
Supply Chain Risk Management
CNOOC Limited continues to improve its supplier risk management and control system. It has established the Supply Chain and Supplier Management Measures to standardize handling methods, standards, and processes. The Company conducts supplier compliance inspections aperiodically and takes measures such as prohibition or transaction restrictions for non-compliant suppliers. To address potential risks from unforeseen factors, the Company maintains good cooperative relationships with major suppliers, strengthens market research, actively develops new supplier resources, and broadens supply channels to ensure adequate supply and promote competition.
In 2025, the percentage of key suppliers qualified or assessed on site is 100%.
Supply Chain ESG Management
CNOOC Limited requires suppliers to comply with the Company's relevant requirements on safety and health, employee rights, environmental protection, and business ethics. The Company conducts thorough risk identification and control for potential environmental and social risks in the supply chain. It focuses on specific countries, industries, and related product categories to accurately conduct risk screening and assessment, select key suppliers, and continuously improve supplier quality.
The Company organized 1,758 suppliers to conduct compliance communication training, with 100% of key suppliers receiving compliance communication.
CNOOC Limited has formulated the Guiding Opinions on the Green Development of Procuring and Supply Chain and the CNOOC Limited Action Plan for Green Supply Chain Construction. These guide the procurement supply chain to implement green and low-carbon strategies and accelerate green transformation and high-quality development. The goal is to form a green development model for the procurement supply chain with CNOOC characteristics by 2028. The Company has formulated supporting documents such as green procurement catalogs, actively promoted the application of green technologies, and guided suppliers to implement the group company's “Carbon Peak and Carbon Neutrality” management requirements.
The Company firmly abides by local laws and standards regarding human rights and anti-violent conflict to ensure ethical compliance in business operations. We eliminate human rights violations by implementing the compliance manual and contractor management system to ensure strict adherence to regulations. The Company requires suppliers to strictly comply with national and local government regulations on wage standards, social insurance, and labor safety. It prohibits forced labor, child labor, discrimination, and harassment. Suppliers must pay full salaries on time, provide safe and healthy workplaces, and grant legally mandated leave to ensure lawful employment practices.
CNOOC Limited places great emphasis on and actively implements a localized procurement strategy outside of China, fostering deeper partnerships with outstanding local suppliers. In Uganda and Iraq, the Company's overseas subsidiaries have established clear local procurement policies, defined the proportion of annual local social contribution projects and specified the catalog of goods and services to be procured from local suppliers. Through these efforts, CNOOC Limited aims to successfully integrate into local markets and contribute to regional economic development.
Supply Chain Resilience
CNOOC Limited actively promotes 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. 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. The Company continues to cultivate and build enterprises with core competitiveness and unique advantages, constantly consolidating supply chain resilience and strengthening supply chain advantages.
CNOOC Limited adheres to a technology-led, innovation-driven development philosophy. The Company systematically builds an open, collaborative, efficient, and empowering scientific and technological innovation system. This injects strong momentum into achieving sustainable development and enhancing energy supply security capabilities.
Science and Technological Innovation Management
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. In 2025, the company's R&D investment reached 5.481 billion yuan, with a total of 5,037 R&D personnel.
We act in strict compliance with laws and regulations such as the Science and Technology Progress Law of the People's Republic of China to formulate a series of internal management methods, such as the Science and Technology Project Management Measures. These efforts have effectively established a technological innovation management system, providing comprehensive support for the company's industrial upgrades.
We adhere to the innovative concept of "Pursue Excellence, Pioneer the Future", accelerating the cultivation and development of new quality productive forces of marine energy. We have intensified core technology research and development in multiple fields such as oil and gas equipment manufacturing, exploration and drilling, oil and gas production, and digital and intellectual transformation, taking the lead in building a strong maritime nation.
By upgrading deepwater oil and gas exploration and development technology, CNOOC Limited has achieved green and low-carbon transformation. This has promoted the optimization of China's energy structure and energy security, advanced the coordinated development of regional economies and ecological civilization construction, and supported the achievement of the country's "Carbon Peak and Carbon Neutrality" goals.
Intellectual Property Rights Protection
We place great emphasis on intellectual property management and strategic planning by strictly complying with the Patent Law of the People's Republic of China, the Trademark Law of the People's Republic of China, and the Law of the People's Republic of China on Promoting the Transformation of Scientific and Technological Achievements, among other relevant laws and regulations. To strengthen its IP framework, we have revised and improved the Patent, Software Copyright, and Proprietary Technology Management Measures, establishing a comprehensive system to regulate the creation, utilization, protection, and management of intellectual property.?
