CNOOC Limited's 2025 Strategy: Stable Capex, Growing Production, and Green Initiatives

CNOOC Limited, the largest producer of offshore crude oil and natural gas in China, has announced its business strategy and development plan for the year 2025. The company aims to maintain stable capital expenditure while increasing net production and promoting technological innovation and green development. Here's a closer look at the key aspects of CNOOC Limited's 2025 strategy:

1. Stable Capital Expenditure and Growing Production: CNOOC Limited plans to maintain a stable capital expenditure budget of RMB125 to RMB135 billion in 2025. This balanced allocation of resources will enable the company to invest in both exploration and development projects, ensuring a steady pipeline of new projects and sufficient capital investment for existing operations. The company's net production target for 2025 is set at 760 million to 780 million BOE, with daily net production exceeding 2 million BOE. This growth trajectory is expected to continue, with net production targets of 780 million to 800 million BOE in 2026 and 810 million to 830 million BOE in 2027.
2. Exploration and Development Integration: CNOOC Limited 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 are expected to come on stream, including the Bozhong 26-6 Oilfield Development Project (Phase I) and Kenli 10-2 Oilfields Development Project (Phase I) in China, as well as the Yellowtail Project in Guyana and Buzios7 Project in Brazil. These projects are expected to contribute significantly to the company's production targets.
3. Technological Innovation and Green Development: CNOOC Limited actively promotes technological innovation to sustain and increase reserves and production. In 2025, the company will continue to build intelligent oil and gas fields, establish technology systems, refine digital scenarios, and accelerate the construction of unmanned and semi-unmanned offshore platforms. Additionally, CNOOC Limited will drive the integrated development of hydrocarbon sector and new energy sectors, expanding offshore wind power and onshore photovoltaic projects, and expediting green power substitution. The company has incorporated carbon price into its investment evaluation process and has been advancing regional CCS/CCUS pilot projects, demonstrating its commitment to reducing its environmental impact and addressing climate change.
4. ESG Focus: CNOOC Limited attaches great importance to ESG (Environmental, Social, and Governance) factors and improves its development strategy and governance system with ESG concepts. In terms of Environment, the company has put environmental protection and energy conservation as priorities, releasing green development and emission reduction policies and taking proactive measures to address climate change. In terms of Society, CNOOC Limited endeavors to serve the society, create harmony, and benefit the people, 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, strengthening the construction of the board of directors and continuously improving the corporate governance system to achieve sustainable development.
5. Shareholder Returns: CNOOC Limited places great emphasis on shareholder returns and has 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 its dividend policy based on changes in the market environment, while taking into account factors such as the shareholders' opinions, strategic planning, and operating results.

In conclusion, CNOOC Limited's 2025 strategy focuses on maintaining stable capital expenditure, increasing net production, and promoting technological innovation and green development. By integrating exploration and development, optimizing operations, and prioritizing ESG factors, the company aims to create value for shareholders and contribute to a more sustainable energy future.