CNOOC Limited (the “Company”, SEHK: 00883 (HKD Counter) and 80883 (RMB Counter), SSE: 600938) announces its business strategy and development plan for the year 2025.
- Maintain stable capital expenditure, with net production set to exceed 2 million barrels of oil equivalent (BOE) per day
- Annual payout ratio will be no less than 45% over the next three years
In 2025, the Company’s production will continue to grow and daily net production will exceed 2 million BOE. The net production target for the year is 760 million to 780 million BOE, of which, the production from China and overseas accounts for approximately 69% and 31%, respectively. The net production target is 780 million to 800 million BOE in 2026, and 810 million to 830 million BOE in 2027. In 2024, the net production is estimated to be approximately 720 million BOE, setting record highs for 6 consecutive years.
The Company’s capital expenditure will remain flat. In 2025, the total capital expenditure is budgeted at RMB125 to RMB135 billion, of which, the capital expenditures for exploration, development and production will account for approximately 16%, 61% and 20% of the total, respectively. The Company’s capital expenditure for the year 2024 has been well implemented, which is expected to reach approximately RMB132 billion.
The Company endeavors to search for large and medium-sized oil and gas fields, to strengthen the resource base for reserves and production growth. In 2025, the capital expenditure for exploration in China will mainly be directed to sustain crude oil reserves while expand natural gas reserves, led by the construction of the three trillion-cubic-meters-level gas regions. For overseas exploration, the Company will continue to focus on the Atlantic Ocean rim and the “Belt and Road” countries. Drilling will continue in Guyana and rolling exploration is planned in Nigeria. Seismic survey will be conducted in Mozambique and Iraq. At the same time, the Company will continue to seek for high quality acreage, especially operating assets.
The Company will promote exploration and development integration, as well as engineering standardization, to accelerate the conversion of reserves into production. In 2025, multiple important new projects will be brought on stream, including Bozhong 26-6 Oilfield Development Project (Phase I) and Kenli 10-2 Oilfields Development Project (Phase I) in China, as well as Yellowtail Project in Guyana and Buzios7 Project in Brazil.
While increasing reserves and production, the Company will actively promote technological innovation and green development. In 2025, the Company will continue the researches on key oil and gas exploration and development technologies and build intelligent oil and gas fields. Relying on the “Hi-Energy” artificial intelligence model, the Company will facilitate the in-depth integration of digital intelligence technology with the oil and gas business to promote lean management. The Company will drive the integrated development of hydrocarbon sector and new energy sectors. The scale of offshore wind power will be gradually expanded. Onshore photovoltaic projects will be screened and built. Green power substitution will be expedited. In 2025, the green electricity consumption is expected to exceed 1 billion kWh, with an increase of 30% year-on-year. The Company has incorporated carbon price into investment evaluation process, and has been advancing the regional CCS/CCUS pilot projects.
The Company attaches great importance to ESG and improves the Company’s development strategy and governance system with ESG concepts. In terms of Environment, the Company has put environmental protection and energy conservation as priorities. Green development and emission reduction policies have been released and measures have been taken to proactively address the challenges of climate change. In terms of Society, the Company has endeavored to serve the society, create harmony, and benefit the people. The Company has been actively participating in public welfare undertakings to respond to social needs. In terms of Governance, the Company adheres to high standards of compliance and governance, strengthens the construction of the board of directors, and continuously improves the corporate governance system to achieve sustainable development.
The Company has placed great emphasis on shareholder returns and shared the fruits of development with shareholders. Subject to the approval of the general meeting of shareholders, for the years 2025 to 2027, the expected annual dividend payout ratio will be no less than 45%. By adhering to the principle of returning to shareholders, the Company will adjust the above dividend policy based on changes in the market environment, while taking into account factors such as the shareholders’ opinions, strategic planning, and operating results.
Mr. Zhou Xinhuai, CEO of the Company, said, “In 2025, CNOOC Limited will solidly push forward the three key programs of increasing reserves and production, technological innovation and green development, to drive the Company’s high-quality and steady development. We will actively share the fruits of development with our shareholders while enhancing our capability of value creation.”