CNOOC 2016 Annual Reportkeic.mica-apps.net/ National... · · 2017-11-27All disclosed financial...

CN

OO

C 2016 Annual Report

CNOOC Office for Policy ResearchAddress: CNOOC Building, No. 25 Chaoyangmenbei Dajie, Dongcheng

District, Beijing 100010, P. R. ChinaE-mail: [email protected]: www.cnooc.com.cnBV-COC-010509

ABOUT THE COVER

“Ya 13-1” Gasfield production platform

Reporting Scope:

The entire China National Offshore Oil Corporation (CNOOC) group of companies.

Reporting Period:

January 1 – December 31, 2016. Considering the consistency and comparability of the disclosed

information, part of the information was extended with its disclosure time brought forward or

backward.

Principles of Preparation:

To meet the needs of stakeholders and the general public, by disclosing key information on the

Company in a true, objective, timely and comprehensive manner.

Alternative Reference:

China National Offshore Oil Corporation is hereinafter also referred to as CNOOC, the Company,

the Corporation, “we”, “our” or “us”.

Data Used in the Report:

All disclosed financial data or information related to the Company is the final accounting data

audited by third parties. Unless otherwise specified, all amounts are expressed in Renminbi (RMB).

Information Sources:

The Company’s official documents, statistical reports and our subsidiaries’ fulfilment of

responsibilities. All information has been reviewed by our management, supervision department

and the various subsidiaries.

Language:

This report is published in both Chinese and English. In case of discrepancies, the Chinese version

shall prevail.

Accessibility:

This report is available in print and electronic formats. The digital version can be downloaded from

the Company’s website at www.cnooc.com.cn. To obtain a print version of the report, please email

[email protected].

REPORT DESCRIPTIONS 2016 CNOOC Annual Report Contents

CHAIRMAN’S LETTER 02

PRESIDENT’S LETTER 04

MAIN ACHIEVEMENTS 06

ABOUT US 08

BUSINESS

Oil and Gas Exploration and Development 30

Engineering and Technical Services 33

Refining and Marketing 36

Natural Gas and Power Generation 39

Financial Services 42

Internationalization 44

MANAGEMENT

Technology Innovation 50

Management Innovation 53

QHSE 54

Informatization Progress 62

Human Resource Management 63

Corporate Culture 67

Corporate Citizenship 69

MILESTONES 2016 72

GLOSSARY 75

AGENCY DIRECTORY 78

FEEDBACK 80

PERFORMANCE OVERVIEW

Auditors’ Report 22

Consolidated Income Statement 23

Consolidated Balance Sheet 24

Consolidated Cash Flows Statement 26

Notes to the Financial Statements 27

CORPORATE GOVERNANCE

Resumes of the Board Members 12

Operation of the Board 14

Risk Management 16

Resumes of other Senior Executives 17

06 07

CNOOC 2016 ANNUAL REPORT MAIN ACHIEVEMENTS

Total Profit in 2016

UpstreamMid-and downstreamEngineering technologies and servicesOthers



MAIN ACHIEVEMENTS Total Assets Operating Revenue

11,578 4,377

11,624 4,261

11,194 6,116

2016 2016

2015 2015

2014 2014

（Unit: RMB 100 million）






Total Profit Net Assets

105 6,750

451 6,692

1,052 6,439

2016 2016

2015 2015

2014 2014

Capital Investment Taxes & Bonuses

811 741

1,057 821

1,550 1,143

2016 2016

2015 2015

2014 2014

Total Assetsin 2016

10.5%

14.1%

26.3%

1.3%

Operating Revenue in

2016

67.6%

23.6%

7.5%

（Unit: RMB 1 billion）

-10

-5

0

5

10

15

20

-5.62

17.06

-9.23

3.2449.1%

08 09

CNOOC 2016 ANNUAL REPORT PRESIDENT’S LETTER

ABOUT USChina National Offshore Oil Corporation (“CNOOC”), the largest offshore oil & gas producer in China, is a mega state-owned

company operating directly under the State-owned Assets Supervision and Administration Commission of the State Council of

the People’s Republic of China (herein referred to as “SASAC” in the Report).

The Company was founded in 1982 and is headquartered in Beijing. After 30 years of reform and development, CNOOC has

become an international energy company with promising primary businesses and a complete industrial chain, and business

covers more than 40 countries and regions. The Company has formed oil & gas exploration and development, engineering and

technical services, refining and marketing, natural gas and power generation, financial services—five main business segments,

and its sustainable development capacity has been significantly improved. In 2016, it was ranked 109th in Fortune Global 500

and 30th in Petroleum Intelligence Weekly (PIW)’s World’s Top 50 Oil Companies, respectively down by 37 slots and up by 2 from

the previous year. By the end of 2016, Moody’s and Standard & Poor’s rated the Company with credit ratings of Aa3 and A+.

Main Business

Energy for All

Cooperation, steadiness, and differentiation

People-oriented, responsibilities, win-win benefits, credibility, innovation

Synergetic development strategyTechnology-driven strategyTalent development strategyCost-Priority strategyLow-carbon green strategy

International first class energy company with chinese characteristics

Our Vision Development Goals

Development Principles

Corporate Philosophy

Core Development Strategies

China National Offshore Oil Corporation (CNOOC)

Oil & Gas Exploration and Development◆ Exploration◆ Development◆ Production

Engineering & Technical Services◆ Oilfield Services◆ Offshore Oil

Engineering Services◆ Professional Services

Financial Services◆ Finance Company◆ Trust◆ Insurance◆ Financial and Strategic

Investment◆ Finance Leasing

Refining and Marketing◆ Oil Refining◆ Petrochemistry◆ Chemical Fertilizer◆ Business Development &

Marketing

Natural Gas and Power Generation◆ LNG Receiving Terminals◆ Natural Gas Pipelines◆ Natural Gas-fired Power Generation◆ Urban Gas Supply◆ Vehicle/Vessel Gas◆ Natural Gas Liquefaction and

Distribution

12 13

CNOOC 2016 ANNUAL REPORT CORPORATE GOVERNANCE

Resumes of the Board Members

Yang HuaChairman and Party Leadership Group Secretary

Born in May 1961, Mr. Yang Hua graduated from China University of Petroleum (the former East China Petroleum Institute) with a

Bachelor of Science degree in Petroleum Engineering in August 1982. He received an MBA degree from Massachusetts Institute

of Technology in May 2004. He is a Sloan Fellow of MIT and professor-level senior economist. Mr. Yang joined CNOOC in August

1982 and had served in a number of positions including Manager of Field Development Department of CNOOC Research

Center, Deputy Chief Geologist and Deputy Director of Overseas Development Department of CNOOC, President of Overseas

Oil & Gas Corporation Ltd., and Senior Vice President, Chief Financial Officer and EVP, President, CEO, Vice Chairman of

CNOOC Ltd., and Assistant President of CNOOC. In April 2010, Mr. Yang served as Vice President and Party Leadership Group

Member of CNOOC. In August 2011, he served as CNOOC Director, President and Party Leadership Group Member. In April

2015, he took positions of Chairman of the Board of CNOOC and Party Leadership Group Secretary. In May 2015, he served

as Chairman of CNOOC. He served as the CEO of CNOOC in June 2016, and the Chairman of Board of Nexen Energy ULC. in

October 2016.

Liu JianDirector, President, Vice Secretary of Party Leadership Group

Born in March 1958, Mr. Liu graduated from Huazhong University of Science and Technology with a Bachelor of Science degree

in Marine Internal Combustion Design in January 1982 and received his MBA degree from Tianjin University in 2000. Liu Jian is

a professor-level senior engineer. Mr. Liu joined Marine Petroleum Exploration Bureau in 1982 and successively served as Oil

Platform Section Chief, Vice Director of Maintenance Center, Vice Mine Director. Since January 1994, he served as Vice Manager

of Oil Production Company, Director of the Production Department of Bohai Corporation, Manager of Oil Production Company,

and President of China Offshore Oil Co., Ltd. In July 1999, he was appointed as Deputy President of Tianjin Branch of CNOOC

(China) Limited. In April 2001, he was successively appointed as Deputy President of Zhanjiang Branch of CNOOC (China)

Limited and later President and Party Committee Secretary of Zhanjiang Branch. Since April 2003, he successively served as

Senior Vice President of CNOOC Ltd., President of the Development and Production Department of CNOOC Ltd., and Executive

Vice President of CNOOC Ltd., in November 2006, Mr. Liu was appointed as Assistant President of CNOOC. From January 2009

to September 2010, he also served as Vice Chairman of the Board, Chief Executive Officer, and Party Committee Secretary of

COSL. In April 2010, Mr. Liu was appointed as Vice President and Party Leadership Group Member of CNOOC; in September

of the same year, he served as Chairman and Party Committee Secretary of COSL, and resigned from the CEO post. Since

November 2010, he has also served as Chairman of the Board of COOEC In August 2015, he held post of CNOOC Director,

President and Vice Secretary of Party Leadership Group. In December 2016, he served as the Deputy Chairman and Chairman

of CNOOC.

Boon Swan FooOutside Director

Born in 1955, Mr. Boon Swan Foo holds an MBA from the National University of Singapore. He served as CEO of ST Marine

& ST Aerospace, CEO & Deputy Chairman of ST Engineering Ltd, Managing Director of Singapore Agency for Science,

Technology and Research, Chairman of Exploit Technologies Private Limited, Director of China-Singapore Suzhou Industrial

Park Development Co., Ltd., Chairman of Singapore Changi Airport Enterprise Pte Ltd. Mr. Boon is the Chairman of Global

Investments Limited and Allgrace Investment Management Private Limited, Director of Shin Corporation Plc, MIH Holdings

Limited (South Africa) and Singbridge International Singapore Pte Ltd, Outside Director of Dongfeng Motor Corporation, Senior

Advisor to Temasek Holdings (Private) Limited, Advisor to ST Engineering Ltd., Outside Director of China Huadian Corp. Mr.

Boon also holds an Adjunct Professorship at the Nanyang Technological University. He assumed Outside Director of CNOOC in

February 2012.

Zhang ChengjieOutside Director

Born in June 1953, Mr. Zhang Chengjie had served as Vice Party Committee Secretary of the CPC of North China Electric

Power College, Vice President of North China Electric Power University (NCEPU), Party Committee Secretary of CPC of NCEPU

Baoding, Vice Party Committee Secretary of the CPC and Secretary of Commission for Discipline of NCEPU. Mr. Zhang was

then appointed as Deputy Director and Party Branch Secretary of HR Department of China Guodian Corporation, Director of HR

Department, Assistant President, Vice President and Party Leadership Group Member of China Guodian Corporation. Mr. Zhang

was appointed as outside director of CNOOC in April 2014.

Xia DaweiOutside Director

Born in 1953, Mr. Xia Dawei graduated from Changchun University of Technology with a Bachelor of Science degree in

Engineering Management in 1982 and received Master’s degree in Industrial Economics from Shanghai University of Finance

and Economics in 1985. Mr. Xia started his career in 1969, and had been a visiting researcher at Osaka City University, Dean

of the School of International Business Administration, Assistant President, Vice President and Executive Vice President of

Shanghai University of Finance and Economics successively. Mr. Xia is currently President and Party Committee Secretary

of Shanghai National Accounting Institute. He is a professor and an instructor for doctoral candidates Shanghai National

Accounting Institute and an honorary professor of the Chinese University of Hong Kong. Mr. Xia also holds posts including Vice

President of Chinese Industrial Economic Association, consultant of China Accounting Standards Committee of the Ministry of

Finance, member of the Corporate Internal Control Standards Committee of the Ministry of Finance and member of the Expert

Committee for Listed Companies of Shanghai Stock Exchange. Mr. Xia assumed Outside Director of CNOOC in February 2012.

Ju ZhanghuaOutside Director

Mr. Ju Zhanghua was born in September 1949. He was previously a Vice President of China Huaneng Group and a Member

of the CPC Huaneng Committee. Before that, he served in many positions in the company, including Deputy Manager of

Administration Department, Manager of Securities and Financing Department, and Manager of Administration Department

of Huaneng International Power Development Corporation. He became Manager of General Administration Department and

Assistant President of Huaneng Group before he was appointed as Vice President of the company. Mr. Ju was appointed as

Outside Director of CNOOC in April 2015.

Chen WeiEmployee Director

Born in January 1958, Mr. Chen Wei graduated from China University of Petroleum (the former East China Petroleum Institute) with

a Bachelor of Science degree in Petroleum Engineering in 1982 and received an MBA degree from Tsinghua University in 2002.

He is a professor-level senior engineer. Mr. Chen started to work in 1976 and joined CNOOC in 1984. He successively assumed a

number of positions including Vice Director of Development Department, Vice Director of Overseas Department, Vice Director of

Information Department at CNOOC Research Center and then Vice Director of CNOOC Research Center, and General Manager

of the Human Resources Department of CNOOC. In January 2002, Mr. Chen was appointed as Senior Vice President of CNOOC

Ltd., he also served as General Manager of the Administration Department of CNOOC Ltd., General Manager of the Human

Resources Department of CNOOC Ltd., Director and Party Committee Secretary of CNOOC Research Center, General Manager

of the Technology Development Department of CNOOC, President and Party Committee Secretary of CNOOC Research Institute.

In February 2012, Mr. Chen assumed Employee Director of CNOOC. Since March 2013, he has served as Assistant President

of CNOOC, Executive Vice President of CNOOC Ltd., from February to May 2016, he held the posts of Employee Director and

Assistant to General Manager in the Head Office of CNOOC, and the Executive Vice-President in CNOOC. In May 2016, he

served as the Employee Director, Assistant to General Manager, General Counsel of CNOOC, and the Executive Vice-President,

General Counsel and Compliance Officer of CNOOC.

14 15


Operation of the Board

Board Meeting

Special Committee MeetingIn 2016, the Strategic Development Committee, the Nominating Committee and the Audit Committee of the Board of Directors

held one meeting, one meeting and three meetings respectively.

In 2016, the first meeting of the Strategic Development Committee of the Board of Directors was held on December 20, which

audited three proposals including the Five-Year Rolling Development Plan from 2017 to 2021, 2017 Production and Construction

Budget Plan and 2017 Operation Budget (including Financing Plan), and formed the audition opinions for the Board of Directors.

In 2016, the first meeting of the Nominating Committee of the Board of Directors was held on April 21, which audited 2

proposals on the board secretary adjustment and formed the audition opinions for the Board of Directors.

In 2016, the first meeting of the Audit Committee of the Board of Directors was held on April 21, which debriefed the report

from external audit institution on 2015 final account audit and audited 4 proposals including 2015 Accounting Plan, 2015 Profit

Distribution Plan, 2015 Internal Control and Appraisal Report and 2016 financial Audit institution Employment, and formed the

audition opinions for the Board of Directors.

In 2016, the second meeting of the Audit Committee of the Board of Directors was held on October 20, which debriefed 4

reports including the conduction of financial leasing, foreign projects and 2015 final accounting audit.

In 2016, the third meeting of the Audit Committee of the Board of Directors was held on December 19, which debriefed 2016

internal auditing and 2017 internal auditing plan, audited 2 proposals on financial management, and formed the audition

opinions for the Board of Directors.

The 20th meeting of the second session of the board of directors of CNOOC

Session Time Means Approved Proposal

9th Meeting of the Second Session of the Board of Directors

April 21 On the Spot

Audited and approved 8 proposals including 2015 Accounting Plan, 2015 Profit Distribution Plan, 2016 Employment Plan of Financial Audit Institution, 2015 Internal Control Appraisal Report, 2015 GM Report, 2015 Annual Report of the Board of Directors and Adjustment of the Board Secretary; debriefed four reports including Implementation of Decisions from Board Meetings, Main Operational Achievements in the first quarter of 2016, Company Cash Flow and Cooperation with Royal Dutch Shell.


June 21 Telecommunication Audited and approved the proposal of no longer employing Mr. Li Fanrong as Deputy GM of the Company.


July 1 Telecommunication Audited and approved the proposal on sponsoring programs.


July 21 On the Spot

Debriefed 3 reports including implementation of decisions from board meetings, production and running of the Company in the first half year of 2016, and the operation in the first half year of 2016, and the seminar on international oil and gas industry outlook held by Wood Mackenzie & Company.


August 5 Telecommunication

Audited and approved four proposals of no longer employing Mr. Wu Mengfei as Chief Accountant, employing Mr. Yuan Guangyu as Deputy GM, Mr. Chen Bi as Deputy GM and Ms. Wen Dongfen as Chief Accountant.


September 28 Telecommunication Audited and approved proposal on investment programs.


October 17 Telecommunication Audited and approved proposal on asset transfers.


October 20 On the SpotAudited and approved the proposal of 2017 Plan of the Board of Directors, and debriefed 3 reports including the production and operation of the first three quarters in 2016.


October 28 Telecommunication Audited and approved the proposal on profit distribution.


November 14 Telecommunication Audited and approved the proposal on financing and guarantee

projects.


December 2 Telecommunication Audited and approved the proposal on modifying the Articles

of Association of CNOOC.


December 20 On the Spot

Audited and approved 6 proposals including the Five-Year Rolling Development Plan from 2017 to 2021, 2017 Production and Construction Budget Plan, 2017 Tibet Aid and Poverty Relief and Public Welfare Donation Plan and 2017 Operation Budget (including Financing Plan).

18 19


Lv Bo, Vice President, Party Leadership Group Member

Born in November 1962, Mr. Lv Bo received a Bachelor of Science degree in Management from China University of Mining and

Technology and an MBA degree from China Europe International Business School in September 2005. Since 1985, he worked

in the Ministry of Coal Industry, the Ministry of Energy and the Organization Department of the Communist Party of China Central

Committee and served in a number of positions, including a Vice-Director-level official in the Personal and Labor Department

of the Ministry of Energy, Vice Director and Director of the First Office of Economic and Technology Officials Bureau of the

Organization Department, Director of the First Office of the Fourth Officials Bureau and Director of the Second Office of the

Fifth Officials Bureau of the Organization Department. Mr. Lv joined CNOOC in 2002 and in the same year he was appointed as

Director of the Human Resources Department of CNOOC. In November 2006, Mr. Lv became an Assistant President of CNOOC.

In November 2007, he was appointed as a Party Leadership Group Member of CNOOC. In October 2008, he served as Party

committee secretary directly under CNOOC. In April 2010, he was appointed as a Vice President and a Party Leadership Group

Member of CNOOC. Since December 2012, he has also served as Chairman of the Board of CNOOC EnerTech. From May

2015 to October 2016, he served as a President of CPC CNOOC Party School. He served as the Chairman of the Board in

Offshore Oil Engineering Co., Ltd. and China Ocean Oilfields Services (Hong Kong) Limited in November 2016. He has served

as Chairman of the Board in COSL since December 2016.

Yuan Guangyu, Vice President, Party Leadership Group Member

Born in April 1959, Yuan Guangyu obtained the Bachelor degree of Engineering in Drill Engineering from the Development

School in East China Petroleum Institute, and MBA of CEIBS. He is a senior engineer of professor level. Joining in CNOOC in

August, 1982, he once acted as the Vice Manager of Bohai Oil Drilling Company, Vice General Manager of CNOOC North Drilling

Company, Vice Manager of Operation Department in CNOOC, General Manager and Party Committee Secretary of CNOOC

North Drilling Company, General Manager and Party Committee Secretary of COSL, President and Deputy Party Committee

Secretary of COSL and CEO, President and Party Committee Secretary of COSL. In November, 2006, he was appointed as the

Executive Assistant of CNOOC. In March, 2009, he was appointed as the Executive Vice-President of CNOOC. From April 2013

to June 2016, he successively took the positions of Head, Deputy Party Committee Secretary and Party Committee Secretary of

Bohai Oil Management Bureau of CNOOC and General Manager and Party Committee Secretary of Tianjin Branch of CNOOC.

In June, 2016, he was appointed as the Chairman of CNOOC, President of COSL and General Manager of CNOOC (China). In

July, 2016, he was appointed as the Vice President, Party Leadership Group Member of CNOOC.

Li Hui, Vice President, Party Leadership Group Member

Born in October 1963, Mr. Li Hui obtained a Bachelor degree in foreign trade from University of International Business and

Economics in August 1987. He is a senior international business engineer. From August 1987 to January 2000, Mr. Li Hui served

in a number of positions in China National Metals & Minerals Import & Export Corp., including Deputy General Manager of

the trade unit and President of its South American unit. Meanwhile, Mr. Li also served as Deputy General Manager of Beijing

Economic-Technological Development Area from August 1998 to January 2000. From January 2000 to April 2010, Mr. Li served

in Sinochem Group (named China National Chemicals Import & Export Corp. since October 2003). Meanwhile, he has served

as Vice Director of Sinochem Oil Group, Assistant President of China National Chemicals Import & Export Corp, etc.; in May

2001, he was appointed as a Vice President and a Party Leadership Group Member of China National Chemicals Import

and Export Corporation, and concurrently served as Director of Sinochem Oil Group and, General Manager of Sinochem

International Oil Co. In April 2010, Mr. Li was appointed as a Vice President and a Party Leadership Group Member of CNOOC.

From May 2011 to August 2016, he has also served as Chairman of the Board of China BlueChemical Ltd. And since November

2013, he assumed the position of Chairman of the Board of China Petrochemical Import & Export Co., Ltd. In December 2015,

he concurrently served as Chairman of CNOOC Gas & Power Group Co., Ltd. In August 2016, he served as the Chairman of

the Board in CNOOC Shanxi Energy Investment Limited, CNOOC-Datong Coal Mine Energy & Chemical Limited, CNOOC Inner

Mongolia Energy Investment Limited and CNOOC Erdos Energy & Chemical Limited.

Wu Guangqi, Vice President, Party Leadership Group Member

Born in August 1957, Mr. Wu Guangqi is a professor-level senior economist, Certified Senior Enterprise Risk Manager. Mr. Wu

graduated with a Bachelor of Science degree from the Ocean University of China and was a master of Party and Government

Administration from the Party School of the Central Committee of CPC. He also held a Master’s degree in Management from

China University of Petroleum and a Doctor’s degree in Management from Huazhong University of Science and Technology.

Mr. Wu Guangqi joined CNOOC in 1982 and served as the Party Committee Secretary and Vice President of CNOOC Petro

Tech Services, Director of General Office, Party Committee Secretary, Discipline Inspection Secretary and Chairman of Labor

Union of CNOOC Research Center, Party Committee Secretary and Director of Ideological and Political Department of CNOOC,

and Assistant President of CNOOC. In 2002, Mr. Wu was transferred and appointed as a temporary leading position by the

Organization Department of the Communist Party of China Central Committee as the Deputy Director of the Engineering and

Construction Department of China Three Gorges Project Corporation. In August 2004, he served as CNOOC Party Committee

Leadership Group Member, and team leader of Party Discipline Inspection. In June 2005, he served as Director and Regulations

Director of CNOOC. In December 2011, he served as CNOOC Vice President and Party Leadership Group Member. In October

2016, he served as the Vice President, Deputy Secretary of the Leading Party Members’ Group of CNOOC, the president of

CPC CNOOC Party School, and the Party Committee Secretary of CNOOC in Beijing area. He now holds the posts of Member

of the Council for National Society for Party Building Studies (Member of the Committee of Party Building Studies in State-

owned Enterprises, National Society for Party Building Studies), Executive Member of Research Institute for Party Building,

Ideological and Political Work of central Enterprises, and Member of the Security Committee, State-owned Assets Supervision

and Administration Commission of the State Council.

20 21


Xu Keqiang, Vice President

Born in April 1971, Xu Keqiang achieved Bachelor degree of Oil and Gas Geology from Northwest University, Master degree of

Coal Field Oil and Gas Geology Exploration in 1996 and became a senior engineer. He started to work in August 1996 and once

acted as the Deputy Director of President Office Secretariat of CNPC, deputy-director-general-level and director-level Secretary

of Office Secretariat of CNPC. He was appointed as the Deputy General Manager of CNPC International (Russia) in April 2003

and Deputy General Manager of CNPC International (Kazakhstan) in April 2005. And in May 2005, he started to take concurrent

posts of Project General Manager in Kyzylorda and General Manager of CNPC International (Aidan). Then he was appointed

as Deputy General Manger and Party Committee Member of CNPC (KZ) and General Manager of Aktobe Oil and Gas in

September 2008. In March 2014 he was appointed as General Manager and Deputy Party Committee Secretary of CNPC Tuha

Oilfield Branch and Director of Tuha Oil Exploration and Development Direction Department. In March 2017, he started to act as

the Vice President of CNOOC.

Zhong Qingming, Party Leadership Group Member, Party Discipline Team Leader

Born in December 1963, Zhong Qingming received Bachelor degree of Political Economy of the Economics School, Zhengzhou

University in 1987 and Master of National Economic Plan and Management of the Department of Economic Management,

Jilin University. He started to work from July 1990 and once acted as the principal staff in the Case-Management Section

of Ministry of Supervision, principal staff in the Research Section of Case Hearing Department of the Central Commission

for Discipline Inspection, deputy-director-general-level Discipline Inspector and supervisor of Case Hearing Department of

the Central Commission for Discipline Inspection, Deputy Director of the Research Section of Case Hearing Department

of the Central Commission for Discipline Inspection, Director of General Office of Case Hearing Department of the Central

Commission for Discipline Inspection, Director of Review Office of Case Hearing Department of the Central Commission for

Discipline Inspection, Director of Second Review Office of Case Hearing Department of the Central Commission for Discipline

Inspection, deputy-bureau-general-level Discipline Inspector, Special Supervisor and Director of Second Review Office of Case

Hearing Department of the Central Commission for Discipline Inspection, deputy-bureau-general-level Discipline Inspector and

Special Supervisor of Case Hearing Department of the Central Commission for Discipline Inspection, deputy-bureau-general-

level Discipline Inspector and Special Supervisor of the First Discipline Inspection and Supervision Department of the Central

Commission for Discipline Inspection, deputy-bureau-general-level Discipline Inspector and Special Supervisor of the Fifth

Discipline Inspection and Supervision Department of the Central Commission for Discipline Inspection, Deputy Director of the

Seventh Discipline Inspection and Supervision Department of the Central Commission for Discipline Inspection, bureau-level

Discipline Inspector, Special Supervisor and Deputy Director of the Seventh Discipline Inspection and Supervision Department

of the Central Commission for Discipline Inspection. In December 2016, he was appointed as the Party Leadership Group

Member, Party Discipline Team Leader of CNOOC.

Chen Bi, Vice President, Party Leadership Group Member

Born in April 1961, Chen Bi is a Bachelor of Oil Production Engineering of the Development School in Southwest Petroleum

Institute, Master of Petroleum engineer in Heriot-Watt University, MBA in the School of Economics and Management in THU

and is a senior engineer of professor level. Joining in CNOOC in February 1982, he acted as the Deputy Manager of Drilling

Engineering Department of South China Sea West Company, Deputy Manager of South China Sea Oil Exploration Company,

Head and Deputy Manager of Development and Production Department of CNOOC, Deputy General Manager and General

Manager of Development and Production Department of CNOOC, General Manager and Party Leadership Group Secretary

of Tianjin Branch of CNOOC (China) Ltd., Vice President and Vice Executive President of CNOOC Ltd. and the Chief Safety

Director of CNOOC. In July 2016, Chen was appointed as Vice President, Party Leadership Group Member and Safety Director

of CNOOC. In August 2016, Chen also took the concurrent post of President of CNOOC Oil & Petrochemicals Co., Limited and

China BlueChemical Limited.

Wen Dongfen, Chief Accountant, Party Leadership Group Member

Born in September 1964, Wen Dongfen is a Bachelor of Business Management in Shanxi Finance and Economics College and

a senior accountant of professor level. She started to act as the Deputy Director of Financial Planning Department of Sinopec

in December 2001, Deputy Director for the Financial Department of Sinopec in May 2008, Director of Financial Department of

Sinopec in March 2009, concurrent President of Shengjun International Investment Limited and Deputy President of Sinopec

Finance Limited from May 2012 to December 2015. In December 2015, she was appointed as the Chief Financial Director

and Director of Financial Department of Sinopec. In July 2016, she became the chief accountant and Party Leadership Group

Member of CNOOC. In August 2016, she took the concurrent post of President of CNOOC Insurance Ltd., CNOOC Investment

Co., Ltd., CNOOC Finance Co., Ltd., Zhonghai Trust Co., Ltd. and CNOOC International Lease Finance Company.

22 23

CNOOC 2016 ANNUAL REPORT PERFORMANCE OVERVIEW

PERFORMANCE OVERVIEW

Auditors’ ReportGTCNSZ (2017) No.110ZA3483-T

To the Board of China National Offshore Oil Corporation:We have audited the accompanying financial statements of China National Offshore Oil Corporation (“the Company”), which

comprise the consolidated and company balance sheets as at the year ended December 31 2016, and the consolidated and

company incomestatements, the consolidated and company cash flows statements, the consolidated and company statements

of changes in owners’equity for the years ended 31 December2016 and notes to the financial statements.

Management’s Responsibility for the Financial StatementsThe Company’s Management is responsible for the preparation and fair presentation of these financial statements. This

responsibility includes: (1) preparing these financial statements in accordance with Accounting Standards for Business

Enterprises issued by the Ministry of Finance of thePeople’s Republic of China, and fairly presenting them; (2) designing,

implementing and maintaining internal control which is necessary to enable that the financial statements that are free from

material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in

accordance with China Standards on Auditing. These standards require that we comply with China Code of Ethics for Certified

Public Accountants and plan and perform the audit to obtain reasonable assurance about whether the financial statements are

free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of

the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control

relevant to the Company’s preparation and fair presentation of the financial statementsin order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the Company’s

internal control. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of

accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIIn our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and company’s

financial positions of the Company’s at 31 December 2016, and their financial performances and cash flows for the year then

ended in accordance with the requirements of Accounting Standards for Business Enterprises issued by the Ministry of Finance

of the People’s Republic of China.

Grant Thornton Certified Public Accountants

Beijing, China

20 April 2017

Consolidated Income Statement

For the year ended 31 December 2016

Items Current Period Prior Period

1.Revenue 437,741 426,079

Including: Operating revenue 435,216 423,209

∆ Interest income 1,506 1,603

∆ Premiums earned 250 404

∆ Fees and commissions income 768 862

2.Total cost 440,680 397,587

Including: Operating cost 362,384 326,064

∆ Interest expenses 2 8

∆ Fees and commissions expenses 1 2

∆ Net expenses of claim settlement 53 135

∆ Net provision for insurance contracts service 40 51

∆ Reinsurance expenses -17 -4

Taxes and surcharges 19,495 29,471

Selling expenses 5,559 3,745

Administrative expenses 14,314 14,254

Finance expenses 9,971 8,989

Impairment on assets 21,446 4,927

Other costs and expenses 7,431 9,943

Add: Gain from changes in fair value ( “-” for loss) 133 215

Investment income ( “-” for loss) 5,782 12,121

∆ Gain on foreign exchange ( “-” for loss) 60 49

3.Operating profits ( “-” for loss) 3,036 40,877

Add: Non-operating income 8,743 5,862

Less: Non-operating expenses 1,249 1,667

4.Profit before tax ( “-” for loss) 10,530 45,073

Less: Income tax expenses 230 3,806

5.Net profit ( “-” for loss) 10,300 41,266

Net profit attributable to shareholders of the Company 11,642 28,959

*Profit attributable to minority shareholders -1,342 12,307

6.Other comprehensive income after tax: 12,025 7,230

Other comprehensive income not to be reclassified to profit or loss 47 239

Other comprehensive income to be reclassified as profit or loss 11,978 6,992

7.Total comprehensive income 22,325 48,496

Total comprehensive income attributable to shareholders of the Company 19,803 33,540

*Total comprehensive income attributable to minority shareholders 2,522 14,956

Notes: * items for use in consolidation; ∆ items for financial entities only.

Unit: RMB million

24 25


Consolidated Balance Sheet Consolidated Balance Sheet(Continued)

Notes: * items for use in consolidation; ∆ items for financial entities only. Notes: * items for use in consolidation; ∆ items for financial entities only.

Items Closing Balance Opening Balance

Current Assets:

Cash 97,164 109,810

Financial assets at fair value through profit and loss 1,698 6,066

Derivative financial assets 1,075 526

Notes receivable 2,796 2,873

Accounts receivable 27,398 31,067

Advances to suppliers 6,376 10,666

∆ Reinsurance premium receivables 157 277

∆ Reserve receivable for reinsurance 1,697 1,931

Interests receivable 495 1,289

Dividends receivable 85 87

Other receivables 10,242 10,270

Securities purchased under agreements to resell 376

Inventories 29,769 28,141

Current portion of non-current assets 38,488 2,499

Other current assets 18,691 16,530

Total Current Assets 236,507 222,032

Non-current assets:

∆ Loans and advances 7,251 2,520

Available-for-sale financial assets 70,798 84,594

Held-to-maturity investments 4,183 21,009

Long-term receivables 5,832 4,302

Long-term equity investments 52,812 45,293

Investment property 285 168

Fixed assets 209,221 185,216

Construction in progress 38,518 58,674

Construction materials 1,031 2,303

Fixed assets pending for disposal 8 20

Oil and gas properties 445,029 457,543

Intangible assets 17,717 18,129

Development disbursements 3 17

Goodwill 15,732 18,263

Long-term deferred expenses 4,007 4,370

Deferred tax assets 41,119 28,901

Other non-current assets 7,700 9,027

Total Non-current Assets 921,248 940,351

Total Assets 1,157,755 1,162,383

Items Closing Balance Opening Balance

Current liabilities:

Short-term borrowings 47,013 73,740

∆ Deposits and placements from other financial institutions 167 338

Financial liabilities at fair value through profit and loss 212 207

Derivative financial liabilities 867 483

Notes payable 1,976 1,359

Accounts payable 60,499 51,074

Advances from customers 8,425 8,490

Employee benefits payable 8,703 9,923

Taxes and surcharges payable 13,051 11,762

Inerest payable 2,263 2,207

Dividends payable 52 92

Other payables 17,059 14,227

∆ Reinsurance premium payable 140 227

∆ Reserve of insurance contract 2,265 2,496

Current portion of non-current liabilities 17,495 13,687

Other current liabilities 4,578 632

Total Current Liabilities 184,766 190,943

Non-current Liabilities:

Long-term borrowings 47,155 57,905

Bonds payable 177,704 167,745

Long-term payable 1,812 3,051

Long-term employee benefits payable 420 322

Grants payable 173 257

Provisions 54,002 51,496

Deferred Income 5,174 5,185

Deferred tax liabilities 11,538 16,304

Other non-current liabilities 2 3

Total Non-current Liabilities 297,980 302,266

Total Liabilities 482,746 493,210

Equity:

Paid-in capital 114,346 113,737

Capital reserve 31,889 31,593

Other comprehensive income 870 -7,291

Specific reserve 1,031 945

Surplus reserve 312,891 23,354

General risk reserve 1,542

Retained profit 29,643 319,277

Equity attributable to shareholders of the Company 492,211 481,615

*Minority interests 182,797 187,559

Total Owners’ Equity 675,009 669,174

Total liabilities and owner’s equity 1,157,755 1,162,383

For the year ended 31 December 2016For the year ended 31 December 2016 Unit: RMB millionUnit: RMB million

26 27


Consolidated Cash Flows Statement

Notes: ∆ items for financial entities only.

Items Current Period Prior Period

1.Cash flows from operating activities:

Cash received from sales and services 475,199 452,175

∆ Net increase in deposits and placements from financial institutions -171 66

∆ Cash received from premiums of original insurance contracts 1

∆ Net amount of reinsurance business 972 1,519

∆ Cash received from interests, fees and commissions 2,013 2,039

Taxes and surcharges refunds 3,238 3,505

Other cash receipts related to operating activities 7,008 14,082

Total cash inflows from operating activities 488,258 473,387

Cash paid for goods and services 292,517 252,455

∆ Net increase in loans and advances 1,701 1,199

∆ Net increase in deposits with central banks and other financial institutions 138 -3,073

∆ Cash paid for claim settlements on original insurance contracts 434 723

∆ Cash paid for interests, fees and commissions 3 9

Cash paid to and for employees 23,889 25,519

Taxes and surcharges cash payments 63,725 77,879

Other cash payments related to operating activities 10,803 16,864

Total cash outflows from operating activities 393,209 371,575

Net cash flows from operating activities 95,049 101,812

2.Cash flows from investing activities:

Cash received from withdraw of investments 209,063 210,302

Cash received from investment income 6,983 9,813

Net cash received from disposal of fixed assets, intangible assets and other long-term assets 14,216 852

Net cash received from disposal of subsidiaries and other business units -228 -270

Other cash receipts related to investing activities 8,014 20,234

Total cash inflows from investing activities 238,048 240,931

Cash paid for fixed assets, intangible assets and other long-term assets 70,463 85,652

Cash payments for investments 190,589 225,993

Net cash paid for acquiring subsidiaries and other business units 1 50

Other cash payments related to investing activities 2,107 23,104

Total cash outflows from investing activities 263,161 334,799

Net cash flows from investing activities -25,112 -93,868

3.Cash flows from financing activities:

Cash received from investments by others 1,020 5,493

Cash received from borrowings 80,682 274,223

Other cash receipts related to financing activities 66 14,903

Total cash inflows from financing activities 81,769 294,619

Cash repayments for debts 118,972 242,875

Cash payments for distribution of dividends, profit and interest expenses 27,655 35,158

Other cash payments related to financing activities 1,590 20,321

Total cash outflows from financing activities 148,218 298,353

Net cash flows from financing activities -66,449 -3,735

4.Effect of foreign exchange rate changes on cash and cash equivalents 1,263 789

5.Net increase in cash and cash equivalents 4,751 4,999

Add: Balance of cash and cash equivalents at 1 January 2016 84,844 79,845

6.Balance of cash and cash equivalents at 31 Decemer 2016 89,594 84,844

Notes to the Financial Statements

1. Company ProfileChina National Offshore Oil Corporation (hereinafter referred to as“CNOOC” or“the Company”) is a state-owned oil company

established on 15 February 1982 with the approval of the State Council of the People’s Republic of China. According to the

“Regulations of the People's Republic of China Concerning the Exploitation of Offshore Petroleum Resources in Cooperation

with Overseas Partners” promulgated by the Chinese State Council, the Company is granted an exclusive right of operating the

business of exploiting oil and natural gas resources in cooperation with partners offshore from the People’s Republic of China.

The Company is also an investment institution authorized by the state.

2. The Basis Of The Preparation Of Financial StatementsThe financial statements are prepared in accordance with the requirements of Accounting Standards for Business Enterprises–

Basic Standards, specific standards and relevant regulations (hereafter referred to as ASBE collectively).

CNOOC Limited, COSL, CNOOC Insurance Ltd and other overseas subsidiaries of the Group are prepared in accordance with

accounting standards of the country of incorporation. The consolidated financial statements have been adjusted according to

relevant standards.

3. Significant Accounting Policies1. Accounting Period

The accounting year of the Group is from 1 January to 31 December.

2. Functional currency

The functional currency of the Group is Renminbi (“RMB”).

3. Measurement basis

The Group follows the accrual basis of accounting. The financial statements are prepared under the historical cost convention

except for certain financial assets and financial liabilities. If an asset is impaired, provisions shall be recognized. Financial assets

and liabilities at fair value through profit or loss, the Available-for-sale financial assets and derivative financial instruments are

recognised at fair value. Inventories and fixed assets delayed in payment exceeding credit terms are recognised at present

value of purchasing price. Inventories with impairment losses are recognised at net realizable value and the other assets are

recognised at lower amount between recoverable amount and its fair value. Assete inventory profit should be recorded at

the replacement cost. Non-current assets held for sale are recognised by the lower amount between fair value subtracting

estimated expenses and original book value when satisfying the held-for-sale condition.

For the year ended 31 December 2016 Unit: RMB million

28 29

CNOOC 2016 ANNUAL REPORT BUSINESS

BUSINESS

Oil and Gas Exploration and Development 30

Engineering and Technical Services 33

Refining and Marketing 36

Natural Gas and Power Generation 39

Financial Services 42

Internationalization 44

30 31


Oil and Gas ExplorationIn 2016, the Company strengthened the integration of

exploration and development, allocated China seas with

priority and balanced the mature zones, rolling zones and

new zones, and concentrated on overseas high-quality

blocks and conventional oil and gas resources. Meanwhile,

the Company deepened the idea of value of exploration,

with the main line of seeking large- and medium-scale oil

and gas fields, properly reduced the ratio of high risk and

high investment wells, and guaranteed the medium- and

long-term sustainable development with relatively high

workload. Furthermore, influenced by the sharp decrease

of international oil price in 2016, the Company maintained

a reserve replacement ratio of 8%, which was 145% after

eliminating economic correction.

CNOOC always puts oil & gas exploration and development high on its agenda in an innovative manner to stabilize and further its business development. Guided by the idea of “seeking for new medium and large-scale oil & gas fields”, CNOOC makes extensive breakthroughs in the oil & gas exploration both at home and abroad, and takes the initiative to fulfill the responsibility of supplying oil & gas so as to continuously satisfy people’s ever-increasing consumption demands for petroleum and natural gas.

OIL AND GAS EXPLORATION AND DEVELOPMENT

l Efficiently completed the rating of 4 large- and medium-

scale oilfields including “Kenli 16-1”, “Caofeidian 12-6/6-2”,

“Penglai 20-2/20-3” and “Liuhua 21-2”.

l The deep water natural gas exploration in southeast

Qiong Basin achieved new progress, successfully evaluated

the “Lingshui 25-1” structure and expanded the reserve

scale of this structure.

l The integration of exploration and development was

realized by using the current facilities and equipment, gained

newly increased reserve in oilfields including “Jinzhou 25-1”,

“Caofeidian 6-4”, “Wenchang 13-6”, “Panyu 4-1”, “Xijiang 30-

1” and Weixinan Oilfield Group.

The above exploration achievements further consolidated

the place of China seas as a core region for the Company

and displayed the unique advantages of the Company in

China seas.

The Company drilled 14 wells, collected 9,613 kilometers of

2D and 23,980 square kilometers of 3D seismic materials

overseas. In 2016, there were 2 new discoveries in overseas

exploration and 6 successful ratings of hydrocarbon-bearing

oil and gas structures. The main achievements include:

l Successfully explored 5 appraisal wells in the Libra

Project in Brazil, further confirmed the reserve scale.

l Liza Oilfield in Guyana was successfully rated, which

expanded new bed series and reserve scale; Payara

Structure was successfully pre-explored again.

l The exploration of Owowo West Structure in Nigeria

achieved great success and was rated to be a large-scale

uncompartmentalized oil and gas reservoir, which improved

the economic value of this region.

In 2016, the Company insisted on the idea of “improving

exploration management” overseas, continued to optimize

exploration asset portfolio and successfully transferred part of

the rights and interests of overseas blocks while gaining the

new exploration opportunities, which brought more benefit for

the Company.

The Company kept being improved in exploration deployment

optimization, operation cost reduction and management

In China seas, the exploration workload of the Company

continued to be fully achieved. 115 exploration wells were

explored. In addition, 17 unconventional wells were completed

in China onshore. In 2016, 2,471 kilometers of 2D seismic

materials were collected under self-operation, and 11,347

square kilometers of 3D seismic materials were collected under

self-operation and foreign cooperation. The Company achieved

12 new discoveries in China seas and successfully rated 19

hydrocarbon-bearing structures. The success ratio of self-

operation well exploration in China seas reached 52%-69%.

In 2016, the Company continued to conduct active exploration

strategies in China seas and led to abundant achievements,

which mainly include:

efficiency increasing. In addition, the Company further

improved the operation efficiency and reduced exploration

cost by strengthening geological study, improving operation

standards and refining the operation links.

Development and ProductionIn 2016, the Company completed the production goal and

the oil and gas output reached the target set at the beginning

of the year. The Company organized operation resources

and the construction went on well. Under the precondition of

safety production, the development and production operation

of the Company completed the annual development and

production goals centered with cost reduction and efficiency

enhancement.

In 2016, the Company produced 76.97 million tons of crude

oil and 24.5 billion m3 of natural gas (including CBM). Among

which, the domestic crude oil production was 45.55 million

tons and natural gas was 12.92 billion m3, while the overseas

crude oil was 31.42 million tons and the natural gas was

11.57 billion m3. The four new projects planned to be put into

production in 2016 were all put into production on schedule.

There are “Kenli 10-4” Oilfield, “Panyu 11-5” Oilfield, “Weizhou

6-9/6-10” Oilfield Integration Adjustment Project and

“Enping18-1” Oilfield.

The development and production of the Company is driven

by innovation, led by effectiveness and highlighted by benefit

and sustainable development. The major achievements in

2016 include:

Deepwater equipment

Ice resistance of an oilfield

32 33


l Continued to keep high production efficiency through

delicacy management.

l Consistently carried out special management on

operation expenses, and notable result was achieved. The

operation cost per barrel was decreased to 7.62 USD/boe

which is the third consecutive year of oil price decrease.

l Deeply optimized the technological plan for the

development projects and achieved notable result in cost

reduction and efficiency enhancement.

l Decreasing the equipment and facility breakdown rate

through the deep implementation of integrity management.

Unconventional GasAccelerat ion of the development and ut i l izat ion of

unconventional gas is of great strategic significance for

energy structure optimization and energy supply guarantee.

The Company tracked and researched the new development

trend of unconventional gas in the whole world, meanwhile,

based on the development idea of “develop CBM, tackle

tight gas, explore shale gas”, the Company insisted on the

principle of “integration of exploration and development,

integration of production and sales, integration of self-

operation and external cooperation, integration of tight gas

and CBM” to promote the exploration and development of

unconventional gas.

Relying on the technology advancement, the Company

continued to intensify exploration and development,

accelerated the development of unconventional gas industry

and strived to create a new growth potential. Following

the guideline of “focusing on the key blocks to explore

and invest”, the domestic unconventional exploration was

focused on tight gas, and the new bed series exploration has

made breakthroughs in new zones. The tight gas reserves

and production was increased, CBM production was

stabilized and accelerated, the unconventional gas output

continued to grow. Part of the well exploration and production

integration in Linxing tight gas pilot test zone was advanced

where exploration, fracture and operation were realized in the

same year, and the daily output of wells in operation reached

over 200,000 m3, forming a rapid operation model where

a combination of pipe gas sale, LNG sale and medium-

pressure tank wagon is seen, which accumulated benefiting

experience for the economic and high-efficiency exploration

and development of tight gas. Notable results were also

achieved in CBM exploration and development. North blocks

in Shizhuang applied hydrodynamic wave and fracturing

technology to shorten the gas breakthrough time, which built

foundation for the construction of integration experimental base

for the next step. Panhe Demonstration Project increased over

50,000 m3 of daily output through the initiation of booster

station compressor helical-lobe compressor equipped with

border group valve and other measures. South region in

Shizhuang South Project achieved the first CBM exploration

permit and two gas gathering stations were built and on trial,

which enabled the export sales for the CBM in this region,

and projects in Liulin and Zaoyuan have been promoted

smoothly as planned. In 2016, the Company realized CBM

utilization equivalent to 940 million m3, increasing by 7.8%

compared to that of last year.

In 2016, there were changes in the demand and supply

of global natural gas, and the price of natural gas was

sharply decreased, which brought extreme challenge to the

profitability of unconventional gas. The Company confronted

the challenge and carried out comprehensive coping

strategy. Sales strategy has being constantly optimized,

the connection between production and marketing was

strengthened, and the online transaction was expanded.

Insisting on benefit making by scientific research, one

scientific research project and one demonstrative project

independently undertaken by the Company were approved

by the government. The idea of “win-win” in foreign

cooperation has won great support, which efficiently

promoted the progress of cooperation projects and achieved

the income and benefit growth.

Oilfield Services

China Oilfield Services Limited (COSL) has over fifty years

of experience in offshore oil and natural gas exploration,

development and production, with its business including

geophysical prospecting, well drilling, oilfield technology and

ship. With the most powerful offshore oil service equipment

group in Asia-Pacific regions, COSL can provide sole

business operation service as well as integrated packaged

turnkey operation service. The business is expanded to

six major areas of Southeast Asia, Middle East, America,

Europe, Africa and Far East, covering over 30 countries and

regions in the world. The equipment capacity continues to be

intensified, the technological results keep emerging, and the

internationalized operation level is greatly improved. COSL

has become one of the largest comprehensive offshore

oilfield service providers in the world.

Deepwater operation capacity continued to be improved

steadily. COSL built the whole set of deepwater equipment

group and studied the whole technological system for

deepwater exploration and development, trying to build

the first class deepwater operation team. At present, it

possesses the all-around exploration, development and

Engineering & technical services sector is the solid foundation for the sustainable development of the oil & gas business. The Company adhered to “cost reduction and efficiency enhancement through safe, quality and highly efficient operation, overall promotion of management, and risk control”, highlighted technology innovation, and enhanced equipment capacity, so that technical level was significantly improved, important breakthrough was achieved in operation capacity, international competitiveness and influence was enhanced in 2016.

ENGINEERING AND TECHNICAL SERVICES

production service ability from shallow water to deep water. It

is now managing and operating 44 drilling platforms, among

which 7 are deepwater semi-submersible platforms, forming

a complete deepwater echelon operation of 750, 1,500 and

3,000 meters.

The brand reputation and client recognition in global market

are further increased. In Southeast Asia, it won the drilling

contract exclusively endowed by SAKA and the Indonesia

Tropic integration technology service project. In Middle East,

COSL won the bid for two-to three-year long-term operation

contract of two platforms in IOEC and the drilling service

contract from Oman DNO and entered directional well market

for the first time. In America, it won the offshore drilling

machine and shipping service contract from Pan Am, which

would build a solid foundation for the integration contracting

in the Gulf of Mexico. In Far East, four major operations of

geophysical prospecting, drilling, oil technology and ship

entered the marked comprehensively for the first time.

The serialization and industrialization of independent

research technologies and products were accelerated.

In drilling and logging, COSL has realized the operation

ability of well logging during drilling and direction drilling

technological equipment for two major sizes of wells 12-

1/4 inches and 8-1/2 inches. In drilling & completion

fluids and well cementing, COSL successfully conducted

independent research on four kinds of deepwater drilling

& completion fluids technologies and five kinds of well

cementing technologies, and it developed 30 kinds of core

products, which steadily improved the operation ability

in high temperature, high pressure and ultra deepwater

environment. In terms of completion tools, it self-developed

42 kinds of top completing tools and 62 kinds of bottom

sand control tools. Meanwhile, the drive-pipe well tool series

of 9-5/8 inches and 7 inches were further improved.

“Nanhai No. 6” drilling platform

34 35


In 2016, the development of COOEC was widely accepted

by the capital market, and COOEC was selected as “Top 100

Competitive Listed Companies of China” by Tencent Finance

and awarded the “Pearl of Listed Company” prize.

Professional Technical ServicesCNOOC EnerTech is dedicated in building an internationally

competitive energy technology service company with

coordinated development of diversified industries, which is

integrated with technological research and development,

product manufacturing and professional technology service

and oriented by energy industry service. The businesses

cover most links from upstream to downstream of the oil and

gas industrial chain and is formed with four core business

segments including energy technology services, FPSO

production technology service, energy logistics service

and HSE and energy saving, which make it an innovative

enterprise with sustainable development ability and one-stop

service.

Withstood operation pressure and displayed new strength.

In 2016, CNOOC EnerTech tried its best for promoting cost

reduction and efficiency enhancement and completed

its annual operation goal. Its Oil Extraction Companies

operated various kinds of offshore facilities with safety

and high efficiency and played the mainstay effect in

oilfield production, meanwhile, “Hai Yang Shi You 301”

made foreign breakthrough and the operation in Indonesia

gained over RMB 100 million of revenue, and the small-

scale FRSU market window was opened in Indonesia. The

Safety and Environmental Protection Company boosted

the deep cooperation with the domestic and foreign

famous enterprises. The third-party safety service model

for government purchasing was popularized. Through

integration of production increasing and general contracting,

its Engineering Technology Company made breakthroughs

in emerging market. Its Equipment Technology Company

accelerated the strategic transformation of equipment

operation and maintenance industry, and the storage tank

business entered the middle and downstream market of

refining. The research institutes in Tianjin and Changzhou

solidified the old market and won the new market with

technology transformation at the same time, keeping over

RMB 100 million of earnings. Relying on platinum network

technological advantage, CNOOC Taiyuan Precious Metals

Limited extended its industrial chain, developed value-adding

business and realized rising against the slowdown market.

Management innovation discovery showed its new drives.

The deep blue innovation plan and oil circle project of the

Engineering Technology Companies, the sparkle plan of the

Safety and Environment Protection company, entrepreneurship

competition of the Information and Technology Company and

other plans played great demonstrative effect, which further

activated the motivation for the staff to start new business.

The effect of scientific and technological result was

remarkable. Through major water treatment special project,

it actively promoted the transformation from asset-driven to

technology-driven. The Equipment Technology Company

independently developed 8-inch leakage flux inner inspector

and inner inspection data processing software, with an

advanced international level. The engineering technology

companies successfully developed “integrated window

sidetrack drilling tool”, which filled the shortage of China

offshore oil technology and is of great prospect. The Cener

Tech Tianjin Chemical Research & Design Institute Co.,Ltd

independently developed the whole set of technology for

aromatic hydrocarbon production with inferior diesel, which

caused significant influence on oil refining.

Yamal Project module shipment

“Hai Yang Shi You 113” FPSO

In 2016, it was selected into “Top 500 Innovation Indexes of

China A-Share Listed Companies” and awarded with “Violet

Gold Innovation Award 2016”. In addition, it was chosen to

be the 2016 “Best Enterprise Management Team in Asia” by

world-famous financial magazine Institutional Investor and

awarded the “Best Investor Relationship Listed Company”

prize, and it is included into the component stocks of “Hang

Seng Sustainable Development Enterprise Index” for five

years successively.

Offshore Oil Engineering ServiceCentered on the project construction of offshore oil and

natural gas, LNG and others, targeted with “practical and

delicate implementation of the whole project process”,

cored with cost reduction and efficiency enhancement, as

well as service upgrade, CNOOC Offshore Oil Engineering

Co., Ltd. (COOEC) focuses on building the leading general

contracting capacity of offshore oil project EPCI (engineering,

procurement, construction and installation) within the Asia-

Pacific region.

In 2016, the workload of COOEC decreased rapidly, but the

international project workload took almost 60%. 24 medium-

and large-scale construction projects were implemented

through the year, 126,000 structure tons of steel was

processed, 8,900 of ship days were put into operation,

80 project milestones were totally completed and the

engineering machinery completion were brought forward

155 days cumulatively.

The operation ability and efficiency kept increasing. In 2016,

the offshore projects were operated with high efficiency

and stability, and the “Weizhou 6-9/10” and other 8 projects

were completed. “Yacheng 13-1” Project realized permanent

pressure tapping operation with the application of domestic

tapping machine for the first time, the gas pipeline realized

recovery production 36 days in advance. The Chengbei

upgrading and reform project completed class-A offshore

major operation risk management and control work of

CNOOC, which created the new record in remold workload

and difficulty.

The international projects achieved notable results. In 2016,

COOEC operated 7 international projects including Yamal

Project in Russia at the same time. The Yamal Project made

high-end “Made in China” products enter the Arctic Pole

for the first time, which created the great performance of no

accidents for 38 million working hours. The offshore platform

of Burmese Zawtika 1B Project realized operation in advance

and won high reputation from foreign owners. Meanwhile, the

Brazilian FPSO Project was the first Petrobras project directly

undertaken by COOEC, which created the new record of

11,800 sea miles of towing distance.

The market expansion made new breakthroughs. In 2016,

international market development of COOEC realized

breakthrough with 179 signed/negotiated construction

income contracts in total, among which, Qatar NAF EPCI

Project was the first EPCI general contracting project

independently undertaken in the whole Middle East market,

Shell SDA Project was the first EU project executed in

Qingdao.

Technology-driven effect continued to be played. In 2016,

75 major scientific research projects of COOEC were

carried out through the year, 132 pieces of patents and 19

software copyright registration permits were authorized.

Over 40 technology innovation results including pressure

tapping sealing technology were applied in production,

which brought great economic benefit, and 2 scientific and

technological platforms were preliminarily built, and the

“Ocean Engineering Technology Center” was recognized as

the national enterprise technology center, and the national

level welding technique research and development platform

was built smoothly.

36 37


Refining and PetrochemistryIn 2016, focusing on the theme of “reform and innovation,

mechanism transformation, structure optimization, quality

and benefit increasing”, CNOOC Oil & Petrochemicals

Company comprehensively completed various production

and operation tasks and the overall level of safety production

maintained steady. CNOOC Oil & Petrochemicals Company

insisted on the maximization of overall value in refining

chemical industry, fully played the advantage of production

and sales integration, carefully organized production and

operation, practically improved sales ability and drove the

industry to a connotative development road. Annually, 32.31

million tons of crude oil was processed, 7.38 million tons of

The refining and marketing segment plays an important role in the industrial value chain and helps CNOOC stick to the market-oriented reform direction, realize the scale economy effect, optimize the structure of energy products, and develop into a world class energy company. In 2016, the Company basically completed the reform and restructure of refining industry and formed the refining industry segment integrated with production, sales and scientific research, market operation, professional management and group operation.

REFINING AND MARKETING

CSPC

refined oil products, 1.07 million tons of ethylene, 2.25 million

tons of sodium carbonate, 8.47 million tons of asphalt and

750,000 tons of lubricating oil were produced.

CNOOC Oil & Petrochemicals Company strengthened

production plan management, made crude oil resource

jointing balance, production plan, sales arrangement and

construction commencement and shut-down management

and confirmed the high-efficiency operation of the equipment.

The product structure was adjusted by market. 540,000 tons

of high value-added naphtha, 150,000 tons of jet fuel and

1.02 million tons of white oil was increasingly produced.

Re-exportation business of refined oil product processed

with giving materials was actively developed; the annual

refined oil product export reached 2.25 million tons. Huizhou

Refinery expanded 8 kinds of crude oil suitable for refining,

which greatly reduced the crude oil processing cost,

Daxie Petrochemical and Orient Petrochemical increased

production load through foreign purchasing of ethylbenzene,

which effectively utilized the spare capacity of styrene device.

China Offshore Bitumen Co., Ltd. increased production in

high-grade, high value-added rubber oil, transformer oil and

special asphalt product in asphalt lubricating oil business,

ascending one of the first class domestic transformer oil

manufacturer so as to increase product value.

CNOOC Oil & Petrochemicals Company completed the

refined oil quality upgrading task in advance under great

pressure. The quality upgrading plan of 7 oil products was

running smooth, whose quality and progress achieved

full appreciation from the National Energy Administration.

Among which, the acid-containing heavy oil integrated

utilization and product upgrading project of China Offshore

Bitumen Co., Ltd., safety environmental protection and clean

fuel upgrading project of Zhongjie Petrochemical, distillation

integrated utilization project of Daxie Petrochemical and

integration project of Taizhou Petrochemical were all put into

operation. And the Huizhou crude oil reserve project reached

97% of completion exceeding the plan.

The Phase II Project of Huizhou Refinery was completed

and rich international cooperation results were achieved.

Based on the successful cooperation with the Shell in the

first phase of the project, the company further expanded the

cooperation with Shell to jointly construct the biggest ethylene

production base. This project innovated the international

cooperation management model, introduced advanced

foreign technologies, upgraded integration value and formed

“Banyan Effect” for the industrial park, which was listed

into the “Demonstrations for Introduction of Social Capital

of Central Enterprises in Major Projects”. On November 1,

2016, the project was delivered and the related industrial and

commercial registration changes and staff transfer were all

completed. Meanwhile, the new management structure and

mechanism from CSPC after cooperation expansion was

implemented.

The Phase II Project of Huizhou Refinery

38 39


A CNOOC service station

With an emphasis on the safety and environmental

protection ideas of “safety first, people-oriented, facility

well-equipped, environmental protection upmost”, CNOOC

Oil & Petrochemicals Company strictly implemented the

responsible subjects, strengthened safety risk control and

management, conducted hazards investigation, carried out

special rectification, strengthened emergency disposal, and

therefore, it realized the overall stable safety production.

MarketingIn 2016, CNOOC Oil & Petrochemicals Company reorganized

refining and chemical sales system. With production

enterprises being the resources radius, it founded three

region sales companies including South China, East China

and North China and practiced the optimized overall

planning of “resources, market and benefit” in regional

market, as a result, it realized the operation system of “close

to market, close to refining plant, close to government”,

improved the management and operation efficiency of

production and sales integration and finally formed the

refined oil product sales and marketing network covering “two

deltas and one bay” (Yangtze River Delta, Pearl River Delta

and Bohai Bay) and expanding along “one river and two

railways” (the Yangtze River, Beijing-Guangzhou and Beijing-

Kowloon Railway) to central China. In addition, CNOOC Oil

& Petrochemicals Company realized the sales of oil product

and chemical product up to 40.17 million tons, among which

the sales of oil product was up to 14.65 million tons.

With the digging into market potential and improvement in its

direct selling capacity, the Company increased sales volume

per station and total retail volume of the service station. And

it also won favor from more customers with high-quality oil,

upgraded visual image of service station and considerate

services. The Company accelerated the construction of the

service stations, making the total quantity of service stations

under control reached 828. Meanwhile, it kept enriching

the product categories and gradually expanded the service

network of terminal products including asphalt, lubricating

oil, fuel oil and others.

receiving terminals and build the coastal natural gas channel

to provide clean energy for the sustainable development of

the surrounding economy. In 2016, the natural gas business

of the 13th “Five-Year Plan” achieved a great start, with 16.52

million tons of LNG import volume and 21.5 billion kWh of

power generating capacity. By the end of 2016, the natural

gas business of CNOOC was distributed in 20 provinces

and 90 cities in China. Meanwhile, 7 LNG receiving terminals

were put into commercial operation and the annual LNG

receiving capacity reached 27.8 million tons with 206

service stations, and the natural gas long-distance land

transportation pipeline reached 4,513 kilometers.

The development and sales of natural gas market kept

improving steadily. The Company successively intensified

Accelerating the development of natural gas and power generation is not only in line with the national strategy of energy consumption structure adjustment, but also a practical way for the Company to conduct low-carbon motion, respond to Paris Agreement, correspond to energy revolution, supply clean energy and promote green development. Natural gas and power generation has become a significant plate in the mid- and downstream chain of the Company and shows the greatest growth potential.

NATURAL GAS AND POWER GENERATION

In response to global warming, natural gas is getting more

and more important as key low-carbon clean energy. In 2016,

CNOOC Gas & Power Group strengthened the strategic

study on the natural gas, pushed forward the optimized and

coordinated development of industrial chain and actively

participated in studying and making significant policies

including the national oil and gas system reform, the national

13th “Five-Year Plan of Natural Gas”, TPA of the natural gas,

infrastructure, decentralization of newly-built LNG terminals

and the supervision and audition of pipeline transportation

price cost.

With an emphasis on the Yangtze River Delta, Pearl River

Delta and Bohai Bay, CNOOC Gas & Power Group continued

to expand the natural gas supply network, construct LNG

Hainan LNG delivery

40 41


Main power house of Zhuhai Power Generation

the market development, actively sought for new increasing

points in natural gas industry and prospectively conducted

innovative sales models study including electricity sales

company, natural gas distribution energy and “Internet+”.

While keeping the natural gas market advantages in

southeast coast, it kept extending to north and inland China,

realizing the expansion from coast to inland and from first-

tier to second-tier cities. In 2016, the sales of natural gas of

the resource pool of CNOOC Gas & Power Group increased

substantially with the annual sales of 14.8 billion m3 and

19% of year-on-year growth. In the meantime, the regional

sales increased rapidly, the liquid distribution of LNG

achieved relatively great performance. In addition, through

the strengthening of communication and coordination,

participation of transaction in Shanghai Oil and Natural Gas

Transaction Center, setting up internet sales platform, flexible

pricing and other measures, the Company expanded the

LNG market comprehensively. The annual liquid distribution

of LNG sales of the resource pool reached 2.41 million tons

with 37% of year-on-year growth.

The natural gas power generation remained in safe and

steady operation. The Company guaranteed the safe and

stable production and operation. It actively conducted the

power direct supply and power sales company research at

the same time. Zhongshan Jiaming Power Plant and Hainan

Power Generation actively coordinated with the government

to increase power generation quota and kept the leading

position in the whole province. Zhuhai Power Plan, Shenzhen

Power Plant and Putian Power Plant continued to optimize

operation model, reasonably arranged maintenance, and

actively tried new energy saving methods and deepened the

potential digging, thus all economic indexes were increased.

CNOOC Gas & Power Group tried their best to fulfill the

political and social responsibility as a central enterprise.

Trade and related receiving stations fully played their LNG

emergency supply guarantee advantages to fully complete

the emergency supply guarantee task in Guangdong,

Zhejiang, Tianjin and other cities through emergency

resources allocation, regional cooperation, staff allocation

strengthening and other measures, which vigorously

decreased the utilization of local coals and contributed

actively to the local green ecology.

CNOOC Gas & Power Group actively built completed

natural gas industrial chain service system and actively

expanded the internal and external technology service

market. Meanwhile, the means for creating technological

achievements were diversified. The self-owned core

technology big-scale storage tank was applied in two

projects including Fujian LNG5/6# tank and Tianjin

Replacement Construction, which brought forward the

general contracting capacity construction of CNOOC in

LNG industry. With its own technological advantages, team

design and building capacity and high-quality construction

performance, big-scale LNG Full Containment Storage Tank

technology entered the domestic and overseas market and

made a powerful step in engineering technology service

field, and the operation of Fujian maintenance center has

effectively upgraded the emergency rescue capacity of

Gas station

LNG tank car unloading at terminal stations

Fujian and east Guangdong. Meanwhile, the gas turbine

operation and maintenance service went abroad for the first

time, which accumulated experience and cultivated talents

for the overseas project management.

42 43


CNOOC Finance Co., Ltd.CNOOC Finance Co., Ltd. kept “zero record” of non-

performing assets and bad loans. For the qualified group

units, the service coverage rate has reached 93% and the

clients are distributed in 107 cities of 28 provinces.

In 2016, CNOOC Finance Co., Ltd. completed 224,000

settlements with the amount of RMB 2.34 trillion, and the

average daily self-support credit loan balance reached RMB

29.922 billion, which was 39.83% higher than last year, and

the self-support credit loan balance by the end of the year

was RMB 31.6 billion, 26.56% higher than the beginning

of the year. The annual foreign exchange business income

was RMB 17.85 million with 29% of year-on-year growth.

The annual operation revenue was RMB 2.709 billion,

which realized RMB 1.13 billion of profit after provision. By

December 31, 2016, the total assets of financial company

reached RMB 113.8 billion. Self-support deposit and loan

balances reached the highest level in the history.

Zhonghai Trust Co., Ltd.By the end of 2016, Zhonghai Trust Co., Ltd.’s total assets

reached RMB 10.733 billion and net assets reached RMB

Based on the Company’s industrial development, our financial services focus on the combination of industry and finance, strengthen the risk control, actively innovate financial products and service models, expand the service network, optimize information system, strive to improve our financial service brand, and keep the quality of financial capital and profitability constantly increased.

FINANCIAL SERVICES

4.447 billion, with the newly increased non-performing assets

kept to be zero. The trust business was conducted steadily.

At the end of the year, it maintained 380 trust plans and the

trust assets reached RMB 345.343 billion. It realized RMB

1.383 billion operation revenue, RMB 1.210 billion total profit

and RMB 1.042 billion net profit.

It continued to improve the entity economy efficiency of

financial services and accumulatively conducted RMB 44.83

billion asset securitization project, keeping a leading position

in the industry.

Zhonghai Trust Co., Ltd. provides high-quality service for

group units to improve capital benefiting level. With the

lowered oil price, it actively explores better financial service

supporting model to assist the group units to reduce

financial expenses and improve surplus fund income. Based

on the analysis and judgment on macro economy, currency

policies and other factors, it conducts reasonable assets

allocation and grasps the investment pace to provide high-

quality capital management service for CNOOC enterprise

annuity and make stable increasing for the net value of

enterprise annuity trust. It was also rated as the class-A trust

company by China Trustee Association.

CNOOC Insurance Ltd.CNOOC Insurance Ltd. fully implements the group’s

development strategic deployment, executes the centralized

insurance policies of CNOOC and fully plays the professional

functions of risk management to contribute itself to group

balancing, insurance cost reduction and risk control and

distribution, and finally realizes the effective integration of

production and finance. It supports industrial development

and provides vigorous insurance support for the overseas

projects in sensitive political regions where they are

located to assist CNOOC to expand overseas business,

and plays the synthetic effect of production and financing,

decreases insurance cost for the insuring units and realizes

coordinated development with the group entity industry,

while accelerating indemnity recovery to help the insured

units to recover production as soon as possible.

By the end of 2016, CNOOC Insurance Ltd.’s total asset

reached RMB 5.238 billion and net assets reached RMB

2.735 billion with 15% of year-on-year growth. The capacity

of under writing and corresponding to major disasters also

continued to be intensified. In 2016, CNOOC Insurance Ltd.

kept great operation performance and the total profit was

beyond expectation, which provided strong guarantee to the

development of group main businesses.

CNOOC Investment Co., Ltd.In 2016, through intensifying strategic management and

strengthening stock value management, CNOOC Investment

Co., Ltd. managed 15 stock rights and conducted 2 private

equity investments on behalf of CNOOC. It managed the

holding assets through equity dividend, audition participation

of “three conferences” proposals, asset disposal loss stopping

and other ways, continuously kept great performance in asset

quality, stock operation and management structure. By the

end of 2016, CNOOC Investment Co., Ltd. reached RMB 5.468

billion total assets and RMB 4.864 billion net assets and RMB

178 million total profit.

CNOOC International Lease Finance CompanyDirected by the management guideline of “rely on CNOOC,

serve high-quality customers, compliance with laws and

regulations, conduct sustainable and steady development”,

CNOOC International Lease Finance Company lays a solid

foundation to conduct business innovation, strengthen risk

prevention and control. Through the innovation of business

modles, designing of diversified leasing products, construction

of multiple forms of risk control structures, it provides low-cost

financing for the internal system units and vigorously supports

entity economy to reduce financing cost and effectively controls

the risk. Confronted with new normal economy, CNOOC

International Lease Finance Company actively innovates

leasing models and makes great effort in market expansion.

The financing quality and level are improved and the great

credit is built. With full use of policies in the Shanghai Free

Trade Zone, it achieved the new business qualification for

“investment+leasing”.

In 2016, CNOOC International Lease Finance Company

signed 41 leasing contracts with total contract amount of

RMB 25.1 billion, among which, the internal system project

loan was RMB 13.6 billion while the external loan was RMB 8

billion. It has realized operation revenue RMB 913 million and

total profit RMB 302 million with 52.52% of yearly growth and

zero non-performing assets.

Financial team

44

CNOOC 2016 ANNUAL REPORT

Business OverseasIn 2016, CNOOC paid high attention to the stable operation

of overseas business, kept optimizing overseas business

management mechanism and kept great operat ion

performance. The overseas assets contributed to 38.8% of

the total assets by the end of year.

CNOOC Ltd., continued to be well recognized by the

international capital market. It continued to be listed in the

annual “Platts Energy Top 250” and was awarded again the

honorable titles of “The Best Investor Relations Company

(China)”, “The Best Corporate Governance”, “The Best CEO in

Asia (Investor Relations)” by the journal Corporate Governance

Asia in 2016. In addition, it was awarded the titles of “Annual

Enterprise Awards-Platinum Award” by “The Asset” and

“The Listed Company with the Most Valuable Brand Value”

of “Golden Bauhina Awards” in “Ta Kung Pao Newspaper”.

The CNOOC President Yang Hua won the prize of “The Most

Influential Leader of the Listed Company” of “Golden Bauhina

Awards” in “Ta Kung Pao Newspaper”. In 2016, the overseas

crude oil output of the Company was 31.42 million tons, and

the natural gas output was 11.57 billion m³.

COSL highlighted the overseas business. The company

entered three new markets in Russia, Saudi Arabia and

Oman respectively and newly signed 128 overseas contracts

with the total contracts amount up to RMB 4.41 billion, in

which 10 contracts boast the contract amount of over RMB

100 million.

COOEC has constantly achieved good results in the

international projects. The company is operating 7

international projects. The Yamal Project has set the record

of safety without accident for 38 million working hours. The

Burmese Zawtika 1B Project was put into operation ahead

of schedule. The FPSO Project in Brazil has completed the

CNOOC focuses on the noticeable benefits and utilizes the innovative management to continuously deepen cooperation overseas, optimize its business arrangement and strengthen the soft power, steadily upgrades foreign business management level, pursuits economic output and improves foreign assets value and finally realizes the sustainable development of the overseas business.

Internationalization

extra long distance international sea towing operation with

the voyage for about 11,800 sea miles, which set a new

record in the towing distance of COOEC.

CNOOC EnerTech basically completed overseas market

deployment. In 2016, the overseas external system income

took 54% of total overseas income. it has founded 13

holding subsidiaries overseas, whose business covered

over 20 countries. The Company successively pushed

out 15 management regulations and methods and led the

overseas companies to set up corresponding internal control

and management methods and details. There were many

highlights in overseas market, realizing two breakthroughs:

large ship plate in Southeast Asia market, which was

operated smoothly and laid great foundation for further

cooperation afterwards and the Singapore branch had

made breakthrough in logistics business, accumulated the

experience in logistics organization and resources integration.

CNOOC Gas & Power Group operated its international

business steadily and soundly. The total annual LNG imports

were 16.52 million tons with the year-on-year growth rate of

26%, reached a historic high. It has constantly deepened the

cooperation with the resource parties and other buyers.

Overseas staff presence

D17

D16

B2

B3

B6

A1

A8

A3

A4

A6

A15

A11

A7

B5

B16

B15

C1

C3C5 C8

C20

C6

C21

C7

D2

D5

D12C9

A9

A10

A19

A17

A16

A12

A13

A14

C16

C18

C10

C14

C19

C15

C11

C22

C2

C13

C12

C25

D7

B7

B8

B1

B9

D11

D1

D8

D10

D3

D18

A1. Indonesia

A2. Gabon

A3. Iceland

A4. Nigeria

A5. Guyana

A6. Congo (Brazzaville)

A7. Algeria

A8. Australia

A9. Canada

A10. Trinidad and Tobago

A11. Papua New Guinea

A12. United States

A13. Argentina

A14. Iraq

A15. Uganda

A16. Mexico

A17. Colombia

A18. UK

CNOOC Ltd.

10 14

16

19

18

17

15 2120

22 2423

25

26 27 29

30 3228

31 33 35 36 37 3943 44

4240

41

45387

9

8

11

12 13

1. Algeria2. Nigeria3.Equatorial Guinea4. Gabon5. Congo (Brazzaville)

33. Australia34. Papua New Guinea35. New Caledonia36. New Zealand

7. UK8. Iceland9. Netherlands13. Norway23. Russia

14. Saudi Arabia16. Iraq17. Kuwait18. Qatar19. The United Arab Emirates

37. Canada38. United States39. Mexico

40. Ecuador41. Colombia42. Argentina43. Trinidad and Tobago44. Guyana45. Brazil

1

2

4

5 6

6.Angola10. Egypt11. Uganda12.Kenya15. Madagascar

A2

20. Oman21. Pakistan22. India24. Myanmar25. Singapore

26. Thailand27. Vietnam28. Malaysia29. Brunei30. China Hongkong

C4

D9

D4

D1. Kuwait

D2. Nigeria

D3. Uganda

D4. Pakistan

D5. Australia

D6. Malaysia

D7. United States

D8. Canada

D9. Indonesia

D10. Brazil

D11. Iraq

D12. The United Arab Emirates

D13. Russia

D14. Singapore

D15. Ecuador

D16. South Korea

D17. China Hongkong

D18. Angola

C1. Netherlands

C2. Kenya

C3. Madagascar

C4. Indonesia

C5. Australia

C6. China Hong Kong

C7. Saudi Arabia

C8. New Caledonia

C9. Egypt

C10. India

C11. Nigeria

C12. Brazil

C13. Qatar

C14. Thailand

C15. Vietnam

C16. Iraq

C17. Brunei

C18. Norway

A18

34

C19. Myanmar

C20. Russia

C21. Canada

C22. Uganda

C23. Malaysia

C24. Equatorial Guinea

C25. Mexico

B4

B10

C17

B1. Singapore

B2. Australia

B3. Canada

B4. Iraq

B5. The United Arab

Emirates

B6. Indonesia

B7. Mexico

B8. Thailand

B9. Norway

B10. Myanmar

B11. Russia

B12. India

B13. New Zealand

B14. UK

B15. Saudi Arabia

B16. Oman

B11

B12

D13

D14

A19. Brazil

A20. New Zealand

B14

A5

C23

D15

A20 B13

C24

3

D6

31. Indonesia32. South Korea

North America

South AmericaAfrica Oceania Europe Asia

COOECCOSL CNOOC EnerTech

As an international energy company with a complete

industrial chain, CNOOC provides products and

services both at home and abroad. CNOOC ranks 16th

in the “Top 50 Global Oil and Gas Brands in 2017”

released by Brand Finance, a brand appraisal agency,

thereby demonstrating its brand value.

The Company-owned brands of “CNOOC 36-1”, “Haiji-

ang”, “Awode”, “Yuandu”, “Baiqing” and “Zhonghai

Jinzhou” enjoy a very high reputation in the international

market, in which the “CNOOC 36-1” asphalt was ever

used for the construction of the Brazil’s Olympic

Stadium, the “Haijiang” lube has made great contribution

to the construction of multiple projects of “The Belt and

Road Initiative”, the “Awode” coating has been applied to

several strategic projects of Russia, Pakistan and other

countries as a high-end coating, the marine chemicals of

“Yuandu” and “Baiqing” are sold well in more than 10

countries, and “Zhonghai Jinzhou” pipelines have been

exported for more than 30 tons.

CNOOC service brands include COSL, COOEC, and

etc. The service includes the exploration, development,

and production of conventional and nonconventional oil

and gas fields. The business scope covers offshore and

onshore services and products. Operation service ability

covers shallow and deep water.

Hong Kong

Vietnam

IndonesiaAngola

Libya

Oman

Brazil

Kazakhstan

USA South America

Africa

Europe

Italy

TajikistanUzbekistan

PakistanCanada

South Korea

Japan

India

Singapore

Malaysia

Russia

SouthAfrica

The Middle East

IranAustralia

Iraq

UgandaNorth

America

Turkey

Diesel Jet fuel Gasoline Asphalt Lube Urea

Calcium Chloride Pipelines Catering Barrack

Demulsifier Water ClarifierDefoamer

Coating forColored Sheets

Nuclear PowerCoatings

SodiumCarbonate

Sodium Nitrate, Sodium Nitrite

CNOOC products win Great Prestige in the World

47

BUSINESS

International TradeCNOOC Petrochemical Import & Export Co., Ltd. implements

the development strategy of integration of sales, trading,

storage, operation and financing, pays high attention to

trade quality improvement and actively and effectively

expands market, therefore, its overseas trade makes new

high. Processing exporting trade helps the Huizhou Refinery

products to increase value in exporting, and five business

segments, including oil and gas sales, oil products trading,

storage operation, cruise transportation and financing, keep

great development trend.

In 2016, CNOOC Petrochemical Import & Export Co.,

Ltd. kept to deepen international oil product market and

strengthened internal and external integration operation.

In addition, key indexes like trade volume and total profit

created new historic high. The annual trade volume

exceeded 80 million tons. The sales income was nearly RMB

180 billion, and the total profit set a new record and realized

the best performance since the company was founded.

Sales business vigorously upgraded oil and gas value.

CNOOC Petrochemical Import & Export Co., Ltd. fully played

its advantages in sales and trading integration, actively

expanded market and effectively broadened sales channel.

It conducted natural gas market research and judgment

and gas price negotiation to create new benefit, and applied

innovative cascade rate settlement and decreased sales cost.

The oil product trade industry made new high. The crude oil

trade aimed at the resources need of the Phase II Project

of Huizhou Refinery in advance and signed cooperation

framework agreement with foreign oil Companies. It also

vigorously served refining market to build core client

resource, and its refined oil product grasped the processing

trade to realize win-win development and the trade profit

made a historic high. Its chemical products realized highest

trade volume and best revenue. Its Singapore branch

realized the best performance in history based on “production

and supply guarantee promotes trade”.

The connecting pipeline project of Daxie Storage and Daxie

Petrochemical was completed and put into use, positioning

to long-term client. The integration project in Yantai was

successfully put into operation, which efficiently pushed the

healthy and coordinated development of the sales, trade,

storage, transportation and finance integration strategy of

CNOOC Petrochemical Import & Export Co., Ltd.

The shipping companies invested by CNOOC Petrochemical

Import & Export Co., Ltd. mainly actively served the whole

of offshore crude oil production, focused on improving

governing level, and intensified market expansion and

increased delivery income in the precondition of safety

production, which made huge contribution to the offshore

oilfield production.

With the full use of the associate attributes of trade and

finance, CNOOC Petrochemical Import & Export Co., Ltd.

conducted elaborate financial management and prudently

selected financial products through expanding financing

channels, made financial combination and cooperated with

financial institutes for special financing products and finally

achieved stable financial benefit.

CNOOC Petrochemical Import & Export Co., Ltd. implemented

the idea of “Know It All, Strict Control and Semi-Bearing”

and realized zero major risk through the whole year. The

new trade system was launched by schedule, which greatly

improved the level of futures and paper, broker reconciliation

and quantitative risk management.

（unit: ten thousand tons）

2016 年

2015 年

2014 年

Trade Volume of CNOOC Petrochemical Import & Export Co., Ltd.

8,196

5,808

5,361

48 49

CNOOC 2016 ANNUAL REPORT MANAGEMENT

MANAGEMENT

Technology Innovation 50

Management Innovation 53

QHSE 54

Informatization Progress 62

Human Resource Management 63

Corporate Culture 67

Corporate Citizenship 69

50 51


The Company vigorously implements “science and

technology drive” strategy. According to the scientific and

technological working idea of “arrangement, highlight,

normalization, upgrade”, the Company fully plays the

motivation and leadership of scientific and technological

innovation, strives to make technological breakthroughs,

successively deepens the scientific and technological

system and mechanism reform, comprehensively upgrades

scientific and technological management, then the scientific

and technological innovation mechanism is continuously

improved and the independent innovation capacity is

obviously strengthened. In 2016, the Company implemented

the 13th “Five-Year Scientific and Technological Plan”

and top-level design of major scientific and technological

projects, deepened the scientif ic and technological

innovation operation mechanism study, successfully held

the 8th Science and Technology Conference and the first

innovation meeting of CNOOC, strengthened various

functional work management cored with scientific and

technological project management, which have all achieved

great result.

Management of Scientif ic Research ProjectWith continuous and stable scientific and technological

capital investment, CNOOC invested RMB 4.78 billion

Technology innovation is a strategic engine for an enterprise’s sustainable development. Serving as a global energy company, CNOOC is championing efforts to supply high-quality energy and exploring new-type marine energies continuously based on the oil & gas businesses and driven by the technology innovation, with a view to providing an inexhaustible driving force for sustainable development of the Company.

TECHNOLOGY INNOVATION

annually, among which RMB 2.06 billion was for R&D,

contributing to 1.1% and 0.47% of the main operation

business revenues respectively. Top-level designs of 35

major scientific and technological projects of the 13th “Five-

Year Plan” were completed, which further focused on the

core technology breakthroughs including high-efficiency

development of heavy oil, exploration and development of

deepwater oil and gas fields, exploration and development

of offshore low-permeability natural gas and onshore

unconventional oil and gas and other fields, brought

forward the implementation of scientific and technological

plans. It has arranged the organization and management

of various levels of scientific and technological projects

including major national special projects, key national

research and development planning projects and CNOOC

major technological and scientific projects, meanwhile,

1,151 scientific research subjects at different levels were

conducted through the year, including 96 national and

provincial projects, 416 company-level projects and 639

subsidiary projects. It has innovated project approval and

pre-audition method, conducted strict checking on project

approval of new tasks, in 2016, it has applied 100 tasks while

68 tasks were actually approved.

Establishment of Scientific Research PlatformThe construction of CNOOC top-level design of the scientific

research condition platform has been completed, which

formed the list of 14 key platforms construction deployment

including earth physical key laboratory. In 2016, the

scientific research condition platform construction achieved

a series of results, 6 projects including “Xinjiang drilling

test platform construction” were successfully inspected

（unit: 100 million）

47.8

63.7

77.0

2016 年

2015 年

2014 年

Sci-Tech investment

（unit: 100 million）

20.6

30.7

33.0

2016 年

2015 年

2014 年

R&D investment

（unit: piece）

834

999

833

2016 年

2015 年

2014 年

Authorized patents

（unit: item）

108

135

166

2016 年

2015 年

2014 年

Issued technological standards

（unit: item）

35

59

91

2016 年

2015 年

2014 年

Scientific and technological awards (provincial and above)

（unit: piece）

578

533

484

2016 年

2015 年

2014 年

Scientific and technological paper (core journal)

and approved, among which the Xinjiang drilling test

platform project completed the 4-well platform trial run

drilling operation, conducted over 20 scientific research

equipment and instruments test and training for over 600

people. High temperature and high pressure oil & gas

development experimental platform project developed

several experimental technologies including rock-electricity-

pressure simultaneous analysis at 200℃, 75-100MPa, which

have been applied for over 1,500 times. The horizontal

well test capacity construction project of mult-iple-branch

diversion moderate sand control research and development

condition platform built the first horizontal test well “JJSY-

2H” in China. The horizontal section of “JJSY-2H” was 401

meters which can meet the requirements of horizontal

tools and technological test. The project of tight oil and

gas reservoir exploration and development created a set

of mature experimental technical systems with tight oil and

gas reservoir exploration and development. The project

of submarine pipeline high-efficiency welding technology

and welding joint ECA evaluation technology platform

independently developed submarine pipeline high-efficiency

welding technology including X65, CRA and X70.

Scientific and Technological InnovationIn 2016, 35 innovation results were awarded with provincial

and above level prize, among which 2 were national scientific

and technological prizes, 11 were provincial scientific and

technological prizes and 22 were industrial scientific and

technological prizes. “Key Breakthroughs of Deepwater Oil

and Gas Geological Theoretical Technology Innovation and

Exploration in North Continental Margin of South China Sea”

won the second prize of National Scientific and Technological

Progress Award. “A Deolefin Catalyst Manufacturing Method”

won the 18th Outstanding China Patent Award. 834 patents

were authorized including 452 invention patents. Meanwhile,

the Company completed the integration of standardized

modification projects, upgraded standard quality and level,

integrated 107 single standards to 75 with 30% of integration

rate. 108 technological standards were issued (among which 17

national standards, 30 industrial standards and 61 enterprises),

two international standards-“module drilling machine” and

“pipeline integrity management” were promoted.

52 53


Main Achievements in Scientific Research

Name of Achievement Scientific and Technological Tackling Result

Key vector processing technologies for multi-component seismic data.

Completed the seismic data processing in Bohai and Weixinan region over 200 km2 and the imaging was significantly improved.

Interpretation technology of time-lapse seismic difference.

Successfully applied to the time-lapse data processing of “Xijiang 24-1” Oilfield, the consistency of the time-lapse seismic marker layer reached 96%.

The research achievement on paleogene “clastic-carbonate deposits” high quality reservoir and analysis on its exploration potential in Bohai offshore.

Guided the projects of “Lvda 16-3N”, “Bozhong 27-2”, and “Kenli 16-1” to achieve the key exploration goal.

Comprehension interpretation and evaluation technology of well logging at water flooded layer based on the dynamic mixed conductive model.

Applied to the evaluation of the oilfield water flooded reservoir of “Weizhou 12-1”, realized the target of less than 15% of moisture content in the early production and successfully guided the adjustment of drilling of the oilfield of “Wenchang 13-1/2”.

Independent development of large flow downhole oil and water separation technolgy with the processing load of 12 million m3 per day.

Successfully applied to Bohai Oilfield, broke the international technical monopoly and filled the domestic gap in this field.

Predication technology of driving and pulling of the pile in self-elevating drilling platform.

Applied in the field operation of 8 oil and gas fields in the waters at home and abroad and 5 preliminary research projects. The on-site application prediction result consistency was over 94%.

Intelligent testing and regulation technological achievement of water injection well in the offshore oilfield.

Applied in 4 wells of Bohai Oilfield with the testing and regulation efficiency increased for more than 5 times.

Key technological achievement of debriscarrying drilling of high angle deviated well.

Successfully applied in 14 high angle deviated wells in “Jinzhou 25-1” Oilfield with the drilling operation safety increased greatly.

Independent development of integrated casing sidetracking tools.

Broke the foreign technical monopoly and reduced the operation cost for more than 20%.

Successful development of production and application technology of TS series oilfield water treatment chemicals.

Widely applied in multiple oilfields like Liuhua Oilfield, created total production value of RMB 300 million and taxation of profit of RMB 110 million and saved over 30% expenses.

Independent development of TH series hydrogenation catalyst.

Applied in the internal and external refineries of the systems like Zhoushan Petrochemical.

Successful development of the first domestic submersible pump in large-scale LNG storage tank with self-owned intellectual property.

Applied in the Guangxi LNG projects, reduced expenses over 30% compared with imported devices.

Independent development of mid-low grade phosphorite selection technology and technique optimization.

Improved phosphorus resource utilization rate.

International Technology ExchangeInternational technology exchange is a significant platform

for the Company to build scientific and technological

innovation soft power. The conduction of foreign scientific

and technological exchange is of advantageous effect for

introducing foreign advanced technologies, promoting core

technologies of CNOOC, upgrading company scientific

research level and expanding the visions of researchers.

In 2016, the Company closely met the developmental

need of industry, actively organized and participated in 31

international and domestic communications, among which

12 were international and 19 were domestic. 3,055 people

were participated accumulately.

CNOOC intensifies the idea of leading development with

innovation, practically transforms the innovation idea into

the Company strategy, system, procedure and culture and

gathers the inexhaustible driving force for the Company

development. In 2016, CNOOC held the first innovation

meeting and made significant deployment for promoting

the scientific and technological innovation, management

innovation and business model innovation in new trend.

Management Innovation AchievementsSince CNOOC issued the Management Method of CNOOC

Modernization Achievements Management, the innovation

achievements for business management modernization

has been kept emerging. By the end of 2016, the Company

rated totally 218 outstanding enterprise management

achievements at Compay level, applied and won 92

industrial awards and 28 national awards (11 first prizes and

17 second prizes).

In 2016, the Company rated 25 business management

modernization outstanding achievements at Company

level. Applied and won 11 ministerial level management

modernization innovation achievements, including 2 first

prizes, 5 second prizes and 4 third prizes. The applied

management result of Construction and Implementation

of Comprehensive Energy-Saving Management won the

second prize of the 23rd national business management

modernization innovation achievement (national-level).

“Quality and Benefit Year” 3.0In 2016, the Company deepened the conduction of “Quality

and Benefit Year” 3.0 activity cored with quality improvement

and efficiency increasing and promoted the cost reduction

and efficiency increasing by the requirements of “refined,

Management innovation is an essential guarantee for companies to strengthen their competitiveness and achieve sustainable growth. Under the current complex environment of scientific and technological evolution and profound changes in the operating environment, CNOOC must grasp new trends and requirements of management innovation, make continuous management innovation, and incorporate the innovation in the whole management process.

MANAGEMENT INNOVATION

dedicate, deep, practical”. It has further improved the

enterprise management level and helped the corporate

realize the cost reduction and efficiency enhancement target,

fully completed the main production and operation tasks of

the whole year.

Through value exploration, design optimization, “new

techonlogy, new material, new technics, standalization,

localization, facilitation” and refined production, CNOOC

pushed the whole process cost reduction, the discovery cost

per barrel reached a new low in the past ten years. COSL,

COOEC and CNOOC EnerTech vigorously expanded “two-

foreign” markets and strengthened organization with upstream

business CNOOC Oil & Petrochemicals Company and

CNOOC Gas & Power Group coordinated resource allocation,

optimized the product structure, actively expanded market

and achieved new progress. CNOOC Petrochemical Import &

Export Co., Ltd. and the financial segment actively promoted

production and finance integration and innovated business

models to provide qualified service for the main operation.

The headqueter departments played their organized direction

and coordinated support function through style changing,

quality strengthening and efficiency improving. The “Quality

and Benefit Year” activity achieved over RMB 10 billion of

cost reduction and efficiency enhancement for successive

3 years, which made great contribution to the production

and operation performance. In addition, the Company also

compiled the book: “Trend Reading, Confidence Building,

Bravery Tackling-Quality and Efficiency Increasing / Trend

Mission Education Manual for ‘Quality and Benefit Year’” and

held 8 “Home and Dream” themed tour report activities, which

conducted vigorous promotion and advertisement on the

great experience in the activities and explored to build the cost

reduction and efficiency enhancement long-term mechanism.

54 55


Quality ManagementIn the control of quality, CNOOC adheres to the directives

of “people-oriented, safety first, honest and law-abiding,

reinforcing foundation, innovation-driven and winning with

quality”. It pursues the quality objectives of “excellence

and leading to satisfy clients”, and implements the general

requirements of “emphasizing basis, ensuring safety,

stressing quality and increasing benefits”, so as to fully

establish a quality management system and culture,

build quality management information system, issue

and practice CNOOC 13th “Five-Year Quality Plan” and

continuously upgrade quality management level. CNOOC

obtains complete certif ications for its products and

services, conducts strict quality supervision and control and

constantly improves the quality of its products and services,

establishing a good reputation in the international market.

CNOOC identifies quality risks and clearly recognizes quality

priorities. In 2016, the Company held quality management

meeting and two terms of lab management trainings to

conduct benchmaking research and form comparison

analysis report for implementation.

CNOOC implements special quality examination and

improves product quality. CNOOC conducted special

audition and approval on 6 labs, conducted “whole-

coverage, whole process, identical-standard” special quality

audition and approval on 44 service stations in Hunan

Province, self-checked 480 service stations, 58 oil depots,

27 transportation teams and discovered 1,534 issues, and

formulated and implemented the rectification plans.

CNOOC has carried out quality management activities and

won various national awards. In 2016, the achievements of

the Company emerged one after another in various quality

activities, and three important national awards were gained.

CNOOC attaches great importance to employees’ physical and mental health, commits itself to creating safety production environment for its employees through scientific management and efficient methods, and devotes to providing the society with higher quality products and marketing services in safe, efficient and environment-friendly manners, so as to contribute its values to realize sustainable development of the society and environment.

QHSE

Among which the “Hai Yang Shi You 981” drilling platform

of the Drilling Department of COSL won the second “China

Quality Award”, becoming the only winning unit in frontline

teams. COOEC and Zhuhai LNG Terminal of CNOOC Gas &

Power Group won the “Advanced Enterprise with Excellent

Performance Model for State Implementation” from China

Quality Association, and the Oilfield Chemical Department

of COSL won the “Quality Benchmarking Enterprise” from

the National Petroleum and Petrochemical Industries

Association.

CNOOC promotes the activities of quality management

groups to strengthen the quality culture constructions. In

2016, CNOOC continued to promote quality theme activities

of “QC Group” to highlight its achievements of quality

culture constructions. 7 QC quality groups won the National

Excellent QC Team awards and 259 primary QC groups won

Industrial QC Group awards.

CNOOC also launches “Quality Month” activity and promotes

“Spirit of Craftsmanship”. The Company strengthens quality

advertisement and creates atmosphere for pursuing quality,

it intensifies quality risk control and formulate counter

measures and carries out supervision spot checks and key

product quality special movement to guarantee the product

quality. It also implements QC group activities, technical

competitions and so on to strengthen the quality awareness

of all staff, focuses on cultivating “Spirit of Craftsmanship”

and strengthening quality training to improve the professional

quality and competence of staff.

CNOOC solidifies construction of brand management

system and devotes to building an internationally renowned

brand. By refining the core values of “CNOOC” brand

and revising the Company image brochure, the Company

comprehensively unifies both brand cultural connotation and

image, and improves the world’s recognition on “CNOOC”

brand. “CNOOC 36-1” asphalt, “Haijiang” lubricant, “Awode”

painting, “Yuandu” salty products and “Lishen” batteries, as

well as “Fudao”, “Tianye” and “Sakefu” fertilizers have been

recognized by the society. China Oilfield Services Limited

(COSL) becomes an international renowned brand.

CNOOC endeavors to launch quality management training

to strengthen quality management consciousness. Through

quality management training with various forms, rich content

and clear classification, the Company not only enhances

employees’ awareness of quality management, but also

improves suppliers’ and contractors’ awareness of quality

management, so as to increase their quality management level.

Occupational HealthAdhering to the core QHSE philosophy of “people-

oriented”, CNOOC always puts the safety and wellbeing of

its employees at the forefront. We unremittingly strengthen

the occupational health management, actively improve the

operation environment, focus on the identification, analysis

and control of occupational disease hazard factors in

workplaces and popularize occupational health promotion

activities, so as to ensure the safety and health of the

employees in an all-around way.

CNOOC focuses on the physical and mental health

and promotes health of its employees. Through “Health

Embraces CNOOC” health management system for all

its employees, the Company calls on all employees to

participate in walking and body building activities. It also

“Dongfang 1-1” Gasfield Spring Festival celebration

56 57


launches basic mental health information services, and

continues to expand the stress management and mental

health services to the offshore employees at departments

of headquarters and institutes. In China waters, CNOOC

continuously launches stress management services for

employees working on its 77 offshore and onshore units to

positively release the pressure of employees and effectively

contribute to health promotion.

CNOOC has carried out occupational health monitoring

and evaluation work, and improved health service quality.

In 2016, 44 occupational hazard pre-assessments projects

and 54 occupational hazard prevention measures were

conducted by CNOOC, meanwhile, the regular inspection

of on-site occupational hazard factors realized all-around

coverage and the occupational health inspection rate for

the staff who contact with occupational hazard factors

reached 99.9%.

Operational SafetyCNOOC puts operational safety as the base and lifeline of

its sustainable development. Adhering to the core value

ideas of “safety first, environment utmost, people-oriented

and equipment intact” in environment protection and safety,

CNOOC constantly improves its safe production guarantee

system, enhances safety control in areas of personnel,

production process and emergency response, and builds a

company with inherent safety.

Safety CultureCNOOC advocates code of conduct for field operation,

including “Conduct on Safety Signs” and “Five To-dos

and Five No-nos”. Through conducting various forms of

safety education activities and strengthening safety basis

management, CNOOC constantly builds special safety

culture and the employees transform the safety culture

into their self-awareness and practical behaviors, so as to

effectively guarantee the implementation of safety culture

and the personal safety of employees.

In 2016, CNOOC improved safety training system construction.

CNOOC conducted the whole process supervision from

outline, textbook, question bank, training and assessment to

certification. It also compiled the test data bank for CNOOC

enterprise leaders and safety staff and successively organized

8 terms of trainings and assessment for enterprise leaders

and safety staff with 1,986 people trained in total. 10 safety

online education courses were developed and about 74,000

people signed up for learning with 87% completion rate. At

present, 76 “safety object training classrooms” were put into

use and 1,842 terms of trainings were held through the year

with 60,000 people completing the training.

In 2016, CNOOC advocated the implementation and

deepening of CNOOC Safety Marking Behaviors Guide and

extended to the primary levels. CNOOC conducted “Three-

Ones” activity and promoted the implementation of safety

marking behaviors for leaders, organizations and staff

through “One Behavior Suggestion”, “One Time Supervision

and Inspection” and “One-Week Behavior Monitoring”.

In 2016, CNOOC held the essay contest of “Safety

Management in Frontlines” to summarize and refine the

frontline safety management experience and promote

and advocate effective safety management measures.

172 essays were received and 61 of them were published

on the China Offshore Oil Press. CNOOC also organized

“Safety Production Month” activity. During the activity, the

subsidiaries held 2,884 safety production-themed seminars

and 72 online interviews, 56 forums, and released 638

comments and experiencing articles. They conducted 174

special editions and columns for publicity, released 51,936

publicity materials, set up 2,630 panels and placards, and

accepted 1,727 people for consulting. They held 78 speech

contests and made 241 cultural works and 2,017 pictures,

and held 1,281 training lectures, 281 competitions, 81

exhibitions and 3 art shows. In addition, it organized 539

inspection teams to deepen the safety inspection in 1,027

frontline units.

CNOOC actively leads the safety management of the

cooperation partners. CNOOC and partners jointly organize

safety day themed activities and improve the safety

awareness of the staff and promotes safety management

through safety education video, accident case sharing, team

games, individual safety commitment and so on, to increase

the safety awareness and promote safety management.

Work SafetyCNOOC always implements the principle of “safety first,

prevention first, comprehensive management” and constantly

strengths safety management system construction,

intensifies key preventions and controls and works hard to

create first-class safety production management to provide a

safer working environment for its employees and contractors.

In 2016, CNOOC continued to strengthen the QHSE system,

adhered to systemic management model and upgraded

the whole version of QHSE internal control system. CNOOC

modified 45 regulation documents and abolished 8 regulation

documents. It transformed 10 documents including overseas

project HSE management plan, public health event management

and accident management into the QHSE internal control

regulations, and issued 6 management requirements including

maintenance, start up and shut down, gas and service stations

and dangerous chemicals tank.

CNOOC strengthens safety supervision measures to

effectively prevent major accidents from happening. CNOOC

conducted the risk level control and management for overseas

production facilities and downstream enterprises, promoted

the construction of downstream enterprise risk level control

and management system, and built comprehensive risk

monitoring indexes including well control monitoring, project

construction major operation risk supervision and control

and etc, and strengthened frontline safety management,

pushed to build the post responsibility list, improved on-

site tour check system and upgraded the on-site safety

protection guarantee ability. And it also tackled on the

hazards modification of oil and gas transportation pipelines,

continued to promote the rectification of pipeline hazards

and guaranteed to uncontrollable risk or leakage in different

stages for the whole life cycle, continued to focus on the

key spots, critical links and high-risk points for dangerous

chemicals safety management and promoted the high risk

link safety management like dangerous chemical storage

tank, special operation and maintenance.

CNOOC arranges the annual audition and inspection to

promote QHSE management. CNOOC organized to audit the

HSE management system of 8 units, conducted the special

auditions on quality, self-owned railways, diving contractors

and others, completed 6 whole-system safety check like

CNOOC safety production special supervision, organized

special inspection on the QHSE risk of 6 specified units,

and organized 885 units involving with on-site operation to

complete self-inspection with information system to urge the

implementation of rectification.

Cored with strengthening safety production system

construction, CNOOC grasps the key points of overseas key

and new projects and concerns about the major changes

and potential risks in the process of different overseas

operations to provide effective and timely risk pre-judgment

and technical support for the overseas units to guarantee the

overseas projects to realize “intrinsic safety”.

In 2016, CNOOC further promoted its subsidiaries to

build and improve the HSE management plan by regular

tracking of overseas project HSE risk and progress.

CNOOC organized the HSE audition of head office of

Nexen in Calgary Canada and Long Lake oil sands facilities,

conducted safety audition on the CNOOC Southeast

Asia SES Oilfield extending project facility evaluation, and

conducted pre-production safety inspection on QHSE

management in Iraqi Missan Oilfield and new project. It also

paid high attention to the overseas security and strengthened

the business communication with international security and

emergency rescue forces, which effectively promoted the

construction of overseas security information collection and

pre-warning mechanism.

First emergency drill before Yuedong LNG trial run

58 59


Emergency ManagementBased on hazard identification and risk analysis, CNOOC

constantly improves the management system constructions,

integrates emergency management information system,

develop emergency management APP, improves ICS

system construction and intensifies emergency training and

drills to increase its systemic risk prevention capability and

minimize the impact of emergencies.

In 2016, CNOOC strengthened the construct ion of

emergency maintenance bases and teams, promoted the

Phase I Project of the South China Sea Base, the Phase

II of Tanggu sea pipeline maintenance center and Fujian

pipeline maintenance center for COOEC to be included into

national plan. CNOOC continued to conduct typhoon pre-

warning and emergency disposal, there were 25 typhoons

in northwest Pacific Ocean and South China Sea, among

which 13 typhoons influenced the regular production and

operation. To avoid influence of typhoon, CNOOC timely

activated emergency plan and applied 779 helicopters, 62

ships and 16,732 safety operation staff which successfully

prevent any casualties.

Environmental ProtectionWith the principle of developing a green, low carbon, clean

and renewable economy in mind, CNOOC makes great

efforts to become a “resource-conserving and environment-

friendly” company. Based on the control principles “control

after the event is inferior to control during the event, control

during the event is inferior to control before the event, and

control before the event is inferior to whole process control”,

CNOOC has continuously improved its environmental

management system, constantly enhanced the whole process

environment management for its projects and incorporated

environment protection into its routine production and

operations. As a result, CNOOC effectively reduces the

environmental risk hazards, becomes a “resource-conserving

and environment-friendly” company and realizes sustainable

development as well for the environment.

Tackling Climate ChangeAs global warming is increasing, it has become one of the

core issues globally in need of resolution, so as to reduce

greenhouse gas emissions and protect the environment.

As a responsible international energy corporation, CNOOC

attaches great importance to the work of tackling climate

change. It is the first central enterprise which has completed

carbon self-inspection as per international standards.

In 2016, the Company actively responded to climate changes.

It has been reducing greenhouse gas emissions through

developing carbon emission monitoring and verification

technology besides constant research on CCUS. It strengthens

carbon interrogation and promotes carbon trading, conducting

carbon self-inspection according to the newly-launched 24

standards, so as to have a clear idea of the current situation.

Multiple Chinese Certified Emission Reduction(CCER) projects

were allowed to enter into the carbon market. The total amount

of CCER exceeded 1 million tons.

Energy Conservation and Emission ReductionGuided by the main ideology of “green development, low

carbon and innovation”, CNOOC always advocates green

and low-carbon production, living and consumption patterns.

It controls energy consumption of new projects from the

source through exploring energy conservation potentials

of the existing facilities, planning energy distribution within

the region and continuous investment of the special

fund of energy conservation and emission reduction. It

promotes the work of energy conservation and emission

reduction depending on technical progress. It also uses

energy conservation and emission reduction management

Whale sharks visit Weizhou Oilfield

information system to carry out energy conservation and

emission reduction work in the various links of implementing

production, products circulation and consumption.

In 2016, the Company strictly complied with the requirements

set out in the new “Environmental Protection Law” to intensify

the supervision and inspection of environmental protection,

energy conservation and emission reduction. Moreover, it

established the monthly tracking and feedback mechanism,

tracked and settled 50 environmental hazard events and

specified the responsible units and personnel to make

correction within a definite time. It formulated and revised

five energy conservation standards and conducted the

overall revision of the systems, regulations and detailed rules

of energy conservation management. It carried out “Energy

Efficiency Frontrunner” and advanced energy conservation

campaigns of 12th “Five-Year Plan” and the training activity

of energy conservation management personnel. It organized

promotional activities by the names of Energy Conservation

Week and National Low Carbon Day. It concentrated in

conducting energy audit, “Green Factory”, formulation of

the construction scheme of energy management centre,

optimization of energy system, investigation of the boiler

energy conservation potentials, renovation of variable

frequency pump and water and electricity conservation of

circulating water system to promote the overall improving of

the energy conservation.

In 2016, CNOOC was awarded the 4th term of “Excellent

Energy Conservation and Emission Reduction Enterprise”

issued by State-owned Assets Supervision and Administration

Commission (SASAC) as its 30 affiliated key energy-

consumption units all accomplished the “Ten Thousand

of Enterprises” energy conservation task assigned by

National Development and Reform Commission(NDRC).

The Establishment and Implementation of Comprehensive

Energy Conservation Management won the first prize

of national petroleum and petrochemical “Excellent

Achievement of Enterprise Management Modernisation”.

The energy conservation and emission reduction monitoring

centre of the head office was rated by Ministry of Industry

and Information Technology as the only one “Industrial

Energy Conservation and Green Development Assessment

Centre” in the oil and gas industry of China.

Moreover, the Company implemented 52 energy conservation

projects and invested RMB 406 million for the whole year.

As a result, it saved 230,000 tons of standard coals and

contributed continuously to the ecological civilization

construction.

In 2016, the annual comprehensive energy consumption of

CNOOC was 14.343 million tons of standard coal, the energy

consumption of production value per ten thousand yuan was

0.3519 ton of standard coal (comparable price in 2015). In

2016, five units under CNOOC, including Huizhou Refinery

Branch, were awarded the “Energy Conservation Advanced

Unit” of the petroleum and chemical industry of China.

CNOOC Energy Conservation and Emission Reduction

Monitoring Centre and CNOOC Energy Conservation &

Environmental Protection Service Co., Ltd. were awarded

the “Excellent Service Unit of Energy Conservation” in

national petroleum and chemical industry. The Company

takes “Energy Efficiency Frontrunner” activity as a long-

term mechanism. The ethylene, methanol and synthetic

ammonia of the affiliated enterprises were each awarded the

honourable title of “Energy Efficiency Frontrunner”. CSPC

was awarded the title of “Energy Efficiency Frontrunner” in

2016 national ethylene industry and ranked second.

With great importance attached to the policy of “focusing

on resource development and energy conservation and

prioritizing conservation”, and based on the core of

improving the utilization rate of water resource, CNOOC

places emphasis on technological progress and innovations,

increases efforts on technology reforms, intensifies

supervis ion management, strengthens wastewater

comprehensive treatment and recycling, and enhances

water resource management in the round.

In 2016, CNOOC clarified the water conservation tasks and

targets to all subsidiaries and promoted the implementation

of water conservation. CNOOC actively conducted water

conservation advocating and strengthened danger

awareness of water resource and water conservation,

organized a series of water conservation management and

technology measures to realize water-saving, implemented

60 61


production technical optimization and continued to decrease

the fresh water consumption for unit product, and saved

valuable water resources through reusing of reclaimed

water, sea water desalinization and other measures. CNOOC

consumed 84 million tons of fresh water through the year

and realized 674,000 tons of conservation.

Ecological ProtectionAs a proactive advocate for the protection of marine

ecological environment, CNOOC always attaches great

importance to the protection of biodiversity in the area

surrounding the operation zone. Protecting the environment

is the Company’s unwavering commitment during all phases

of a project life cycle. In order to maintain a harmonious

balance between the economic projects and ecological

environment, the Company always makes it a point to

pre-assess environmental risks, so that it can identify the

environmentally sensitive targets in the vicinity of the project

and avoid environmental risks.

In addition, through the platform of CNOOC Marine

Environmental and Ecological Protection Public Welfare

Foundation, we have actively committed ourselves to the

ecological diversity research and protection project, promoting

resource restoration and environment improvement in the area

where the project is located and establishing characteristic

projects, such as “protection of larga seal” and “enhancement

and releasing”. In the meanwhile, the Company has positively

participated in environmental protection compaigns, making

efforts to create better ecological conditions for building a

beautiful China.

CNOOC has carried out the three-year project of Bohai Sea

penaeus orientalis enhancement capacity research. It has

thrice launched comprehensive investigation on Bohai Sea’s

nekon, benthos and plankton, etc., besides embarking on a

voyage of basic productivity survey. Through such extensive

basic researches, it has determined the evaluation method

of penaeus orientalis enhancement capacity based on

Ecopath model.

The protection and research of various larga seals in the

Dalian Larga Seal National Nature Reserve has become

the characteristic ecological protection project funded

by CNOOC for four consecutive years during which the

Company conducted more than 30 times animal rescue

activities and successfully rescued 11 larga seals and

one finless porpoise. It assists the construction of Lvshun

Shuangdao Larga Seal Monitoring Station and has

completed the construction of holding pond of larga seals

with volume of 300 m3 to provide hardware basis for the

protection of larga seals. It also raised awareness on larga

seal protection through releasing activities and popular

science campaign at the scenic spots, communities,

f ishing zones and school districts. Moreover, it has

been continuously carrying out the scientific research of

investigation and observation of larga seals distribution on

the ice and larga seal physiological research, among other

activities.

Distribution and protection of the finless porpoise population

quantity, breeding migration in the Huanghai Sea and the

Bohai Sea. The finless porpoise is listed among the Class

II Endangered and Protected Wildlife Species of China

and in Convention on International Trade in Endangered

Species of Wild Fauna and Flora, and faces the severe

living condition under the double pressure of deteriorative

ecological environment and overfishing. In order to grasp

the population dynamics of finless porpoise group and its

individual behaviour in the Huanghai Sea and the Bohai Sea,

CNOOC formulated the constructive strategy of protecting

finless porpoise and funds to conduct a 5-year research

project.

Research on protection and restoration technology of

typical coastal zone ecological environment and resources

in Shandong. The Company has organized to conduct the

species selection for key biological resources remediation.

It researches the key technology of remediation of the

coastal wetland vegetation and constructed the science

popularisation exhibition room of marine ecological

environmental protection. It carries out further study on

the current situation of genetic resources of the biological

remediation species in Shandong typical sea areas to make

the protection policies of coastal wetlands and vegetation.

The construction project of eco-village in the beautiful

Weizhou Island. CNOOC positively supports the healthy

development of villages in the Weizhou Island, financing and

planning the layout of environmental protection facilities of

Zitongmu Village in Weizhou Island. It has carried out the

village road reconstruction, centralized construction of waste

water and rainwater and environmental protection campaign

among others. It has protected the biological resources and

ecological environment of Weizhou Island and the surrounding

sea area, improved the villagers’ level of awareness of natural

environmental protection and made a positive contribution to

the construction of beautiful Weizhou Island.

Chinese White Dolphins belong to the first level protected

species in China, and are listed in the near threatened

species by IUVN. Influenced by human activities, their

number and diversity are continuously reduced. Their

population in Pearl River Estuary and Xiamen appears

differentiation in genetics. CNOOC proposes to make

constructive protection strategies for the protection object

of Chinese White Dolphins in the water areas of Fujian,

Guangdong, Hainan and Guangxi. It comprehensively

masters the information of population quantity and

distribution range of them in China sea area and then

defines the potential and key habitats of them. It is planned

firstly to take one year’s time to conduct the small population

dynamic monitoring and risk assessment of them in

Xiamen City, and Shantou City, etc. and then complete the

investigation of their distribution range and core habitat.

Nexen assisted in the protection of ancient mankind

historical sites. The protection of biological diversity not only

refers to the protection of other plants and animals, but also

covers the protection of human’s culture and lifestyle and

understands the human being’s way of life and influence

in the natural environment as a biological population. In an

archaeological activity in 2016, the archaeologists discovered

the relics of ancient human activities near the Nexen’s assets

in British Columbia, Canada. After learning the news, Nexen

immediately sent a team formed by environment experts and

surface land experts to actively assist the archaeologists

to unearth and protect the historical sites and was highly

appraised by the archaeological team.

Release hobby

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Enhancing Fundamental CapabilitiesCNOOC released the “13th Five-Year” informatization

planning, raised to put great effort on the construction of

“Interconnected CNOOC” based on the constant promotion

of “Digital CNOOC”, and actively moved to “Smart CNOOC”.

Based on “Two sites Three centers” idea, after four years

of design and construction, five “green energy saving”

data centers and campus infrastructure network in Beijing,

Shanghai, Tianjin and Shenzhen all completed and put into

operation for resource sharing and integration. CNOOC

gradually promoted the transformation from traditional shaft-

well to “common service platform” of cloud architecture.

In the meantime, the group cloud management platform,

Domino cooperative office platform and mobile application

development platform went online successively and the

“common service platform” capacity was preliminarily

verified. The integration of informatization and operation

management business initiated the implementation of

group contract management system and scientific and

technological management system, promoted the statistical

system construction based on data analysis and the

selection of group financial sharing center, promoted the

group fund management system to support the business for

better achievement of group management and control.

Promoting “Internet+” Innovation ApplicationCNOOC promoted the innovation of “Cloud computing, Big

Data, IoT and Mobile” and other new technologies, enabled

and enhanced the business by providing private cloud

capability; meanwhile, CNOOC set up mobile application

development platform to achieve the mobile access of

collaborative OA and other system, and verified the quick

updating and development ability of mobile applications.

What’s more, the CNOOC card was extended to natural

CNOOC continues to adhere to the policy of “application driven by business, innovation led by information technology” and actively implements the innovation-driven development strategy of the enterprise based on the construction principle of “Platform Profound and Application Simplifying”, deepens IT and business integration and conducts a series of fruitful achievements in application foundation tamping, “Internet+” innovation development, overseas business sharing support, information security guarantee and other aspects.

INFORMATIZATION PROGRESS

gas consumption business and by completing with its

cross-business card application construction. Also, 53 gas

stations of the CNOOC Gas and Power Group implemented

the system, which made CNOOC the first enterprise which

realized the sharing set of retail management system between

gas station and oil station from the group level in the industry.

In the field of terminal sales, CNOOC conducted cooperation

with the third party internet companies and completed the

CNOOC e-commerce platform application construction.

Quickening Overseas Resources SharingBased on successful trial construction and stable operation

in Singapore Asia-Pacific center, CNOOC summarized the

experience and selected Dubai as the core joint to conduct

the construction in the Middle East and African region in

Far East by the local conditions. CNOOC also conducted

overseas customized version development on call center,

operation and maintenance service management ITSM and

other systems.

Safeguard Information System SecurityCNOOC completed shut-off of 116 outlets and fortification

of current outlets, which made the on-line behaviors more

controllable and secure; through the deployment and

optimization of dynamic password management platform,

CNOOC established cluster disaster recovery structure and

improved the reliability, completed the deployment of head

offices and of main secondary level unit, carried out the

internet and information security risk evaluation on 8 local

area networks, security monitoring on 5 regional internet

outlets and a new round of third-level information system

security appraisal, conducted on-site inspection on the

network and information system safety orperation of nearly

20 units as well.

Employee Salary and BenefitsThe Company adheres to the principle of “gender equality

and equal pay for equal work”, and treats the staffs equally

without discrimination in terms of recruitment, training,

promotion and salary, regardless of race, nationality, faith,

gender, age, marital status and special legal protection.

CNOOC strictly complies with the applicable laws and

policies of the jurisdictions where it operates, and on basis

of the principles of market labour management, monetization

of allocations and socialization of benefits, gradually

establishes a distribution system which matches the market

mechanism and is closely connected to value contribution,

and forms a standardized and competitive salary and

benefits framework.

The Company establishes a comprehensively effective

employee welfare system, and constantly increases the

multiple layers, dimensions and comprehensiveness of

employee insurance framework.

Besides social basic insurance (endowment insurance,

medical insurance, employment injury insurance, unemployment

CNOOC firmly believes that employees are the most valuable resource for its sustainable development and upholds the “people-oriented and caring for employees” concept. The Company fulfills its responsibilities to employees, respects their legal rights and interests, improves their professional development, improves their working environment, cares for their physical and mental health, and promotes the integration of local and foreign employees, so as to realize common development in the Company and its employees.

HUMAN RESOURCE MANAGEMENT

insurance and maternity insurance), the Company also

provides supplemented insurance (personal accident

insurance, commercial supplementary medical insurance,

and juvenile children supplementary medical insurance) and

occupational pension and housing allowance.

CNOOC also provides physical examination, special physical

examination for special types of work, paid leave, difficulty

assistance, emergency relief, critical illness relief and various

other benefits as part of our efforts to help them solve any

worries that employees may have.

By the end of 2016, the workforce reached 106,000.

Career DevelopmentCNOOC complies with a scientific talent strategy, treats its

employees as its wealth, and strives to create a fair and

open promotion environment and clear career development

paths. CNOOC has designed three career development

accesses: management, technology and work, besides

establishing a training system of “four in one” with respect to

selection, training, assessment and promotion & qualification

authentication.

Staff presence

Staff presence

64 65


CNOOC adheres to the overall idea of “controlling total

amount, adjusting structure and improving qualification”,

steadily makes the human resource planning in the 13th

“Five-Year Plan” period, constructs a dynamic human

resource management system, and forms human resources

policies and systems of strategic planning, leadership

management, talent development, employment and

compensation performance. CNOOC realizes full coverage

of e-HR system which increases the working efficiency.

CNOOC standardizes the recruiting and management of

employees, strictly controls recruiting quantity and quality,

builds a worker transfer platform for employees, and

promotes reposition and settlement and connection of

supply and demand for employees in the reorganized units,

effectively utilizing internal human resources.

CNOOC continuously deepens the reform of the cadre

and personnel system. The Company founds the head-

office talent leadership group and builds head-office party

member contact experts system to actively promote the

reform of talent utilization and assessment guarantee

mechanism. It increases its efforts for cadre selection and

exchanges, pays attention to training of young cadres and

promotes exchanges between department at headquarters

and frontline cadres. CNOOC makes full use of multiple

opportunities of rotation and exchange, front line training,

local secondment and aiding constructions in areas under

harsh conditions, which select young managers to practice

and work under harsh conditions and undertake urgent,

hard, dangerous and major tasks and work at the frontline.

The Company enhances the level of competitive selection

and strengthens inspecting and examination; CNOOC

also enhances efforts to train, select, exchange, supervise,

control cadres and hold those in charge accountable,

improves the selection and appointment quality of managers

and maintains the purity and capabilities of leading cadres.

Professional ExpertiseThe Company actively participates in the selection of national

high-end talents. In 2016, as many as 19 individual candidates

were recommended for special government allowance,

4 individual candidates for national technical experts, 3

candidates for participating in Central Enterprise Outstanding

Young Talents Support Plan, 2 candidates for Chinese Skills

Award, and one was selected as a scientific and technological

innovation leading talent for “Ten-Thousand Talents Program”.

It selected technical and skillful experts, as well as 38 people

as the third batch of Headquarters technical experts, and 17

people as the third batch of skillful experts in the affiliated units

of the Head Office.

The Company continues to promote the scientific and

technological young talents cultivation project and provide

dual tutors to the first batch of 136 young talents. It organized

two periods of trainings for them and held five professional

young talent forums of exploration, development, drilling

and well completion, offshore engineering, refinery &

petrochemical and gas power to provide the opportunity for

the young talents to communicate with the high level experts

and rapidly develop them to be professional technical

leaders and medium- and high-end technical management

talents, so as to realize the strategic succession of talents in

the Company.

The Company reinforces management on occupational

qualification. We improve the certification policies of internal

occupational qualification, perfect occupational qualification

management system, and strictly implement Company’s

Management Rules of Professional Technical Qualification

as well as 6 supporting detailed rules, constantly improving

talent evaluation level. In 2016, 646 individuals were qualified

for the positions of senior technical professional. In terms of

exploration, borehole and drilling and completion operation,

25, 62, 7, 9 and 439 individuals were qualified for senior

general supervisor and general supervisor, senior project

manager or above level, senior project manager and project

manager and below level positions, respectively.

The Company effectively promotes skill appraisal. We have

organized the development or revision of test libraries on

12 types of work, laying a solid foundation for training and

appraising skilled employees. In the meanwhile, appraisals

of junior, semi-senior, senior, technician and senior technician

levels were organized for 70 types of work, with the number

of appraisals totalling 8,490 person-time.

The Company attaches great importance to the cultivation

and selection of high-skilled talent by holding technician

innovation training class and organizing skills and innovation

exchanges. We actively participated in national and industrial

skill competition with the outstanding achievements. Therein,

four individuals, including Chen Keying from CNOOC

Ltd., Zhanjiang branch, were awarded the title of national

technical experts. Moreover, the competitors dispatched by

the Company were awarded No.1 individual for two items,

No.2 and No.3 individual for one item and second group

prize in 2016 (the 4th) “Jiake Cup” International Welding Skills

Competition.

Employee TrainingCNOOC actively promotes the learning organization

constructions, and encourages employees to set up the

concept of lifelong learning. CNOOC improves the talent

training system at different levels and stages, broadens

training plan and enlarges training investment systematically,

creating a platform for capability building and potential

development of employees. CNOOC training focuses on

long term training and highlights short term efficiency at

the same time. CNOOC adheres to the principle of “up

for strategy and down for performance” and continues to

conduct long-term cultivation on key groups.

CNOOC continues to implement Key Training Plan. For

the semi-senior and senior management talents, through

subdivision of professional talents, CNOOC carries out

targeted training in rotation; for mid-age and young

management talents, CNOOC carries out off-job training

for three months, so as to train young management teams

who are capable of shouldering important tasks; for high-

level technological experts, CNOOC comprehensively

arranges professional and technological training sessions in

Skill competition

Offshore frontline staff presence

66 67


exploration, development and production and well drilling;

CNOOC also holds Young Scientific Talent Training Session

to train technological management talents in fields of deep-

water, unconventional and reservoir geophysics, seismic data

processing, production technologies, high-temperature and

high-pressure gas fields and intactness of equipment and

facilities, and improves their core professional technological

capabilities and scientific research innovation capabilities;

for high-level skill talents, CNOOC holds Comprehensive

Capabilities Improvement Session of Mid-aged and Young

Technicians to improve on-site management skills, innovation

capabilities and capabilities of “apprentice follow master”.

employees and specifically implements it in the individual

performance evaluation system and training system, so as

to ensure that professional level and overall capabilities are

increasing steadily.

CNOOC implements knowledge management project to

accelerate the knowledge sedimentation and inheritance.

The Company built and improved training equipment and

facilities and the knowledge management system and

training resources management system including internal

and external teachers and courses system to realize

knowledge accumulation, experience inheritance and

resources sharing. It initiated featured courses development

and internal tutor training project, collected courses and

outstanding tutors in multiple ways based on “CNOOC Great

Courses and CNOOC Great Teachers” competitions which

rated 40 wide, influential and CNOOC featured courses and

trained a professional and experienced internal teachers;

CNOOC also explored the way for professional talent

training, built professional course systems and successively

promoted the professional training system construction in

leadership, purchasing and drilling and completion which

has achieved great training result.

CNOOC broadens the channels of informat izat ion

training for employees and introduces various models,

including “Internet+”. The Company actively promotes the

construction of “online+offline” “mobile+PC” mixed training

models and Constructed E-learning platform. It completed

the type selection of the online study platform and conducted

trial run in pilot units.

（Unit: hour/person）

86

81

88

2016 年

2015 年

2014 年

Average Traing Hours Per Capita

Emergency Drill Experience

The written test of the skill competition

In 2016, the Company carried out 46,522 training courses,

with 822,900 person-time, 8,215,376 hours of training and on

average 86 hours per person, in which the international talent

training was carried out for 14,556 hours per person.

Supported by a training course system with various

classifications, grades and systems, for its employees,

CNOOC formulates Individual Development Plan (IDP),

analyzes comprehensive and professional training needs of

CNOOC SpiritCNOOC advocates its spirit, sets advanced models, inspires

the passion of the whole staff for devotion and practical

innovation and shapes great image of the Company.

CNOOC dedicatedly compiled CNOOC 2016 Party Building

Annual Report which comprehensively displayed the

corporate party building achievements. CNOOC founded

the “CNOOC E-Party” WeChat enterprise ID covering over

2,300 frontline party branches in the whole system, pushed

out many special activities including “A Letter to Party

Branch Secretary, Yang Hua” and built the “direct train”

between the Party and the frontline Party branches. CNOOC

also conducted “Frontline Party Branch Work” surveys

and researches and attained rich and detailed first-hand

materials.

The subsidiaries of CNOOC achieved fruitful results in

cultural construction. The deepwater drilling and completion

team of Wesrern South China Sea Oil Management Bureau

was awarded the 2015 “National Ocean Figure” and

the “Front Engineer with impressive stories” in central

enterprises. The team deeds were written into the second

series of Front Heroes. And with the opportunity of “Hai

Yang Shi You 981” winning “China Quality”, The Company

vigorously promotes the “Spirit of Craftsmanship” of

excellence pursuing. Meanwhile, the deeds of general

research institute and China Asphalt were selected in

Spiritual Civilization Heroes in Central Enterprises; CNOOC

frogmen participated in the Open Your Door for Good Luck

show of CCTV and showed great images of CNOOC staff,

which made great advertisement. COSL built “Boatman”

culture, CNOOC EnerTech held the fourth “Annual Character”

assessment, CNOOC Enterprises Co., Ltd held “Ten Stars”

achievements tour forum, which set examples for the staff.

Corporate culture is the soul for a company and the power source for the corporate development. In 2015, facing the severe challenges brought by international oil price slide, CNOOC fully played the leading role of corporate culture, enhanced confidence and gathered strength, with the vision of “Energy for All” in mind, on basis of the carrier of “Quality and Benefit Year”, CNOOC effectively advanced corporate culture building and fully guaranteed its survival and development.

CORPORATE CULTURE

CNOOC strengthens culture carrier construction, plays the

effect of Offshore Oil Industrial Exhibition Hall as “National

Ocean Awareness Educational Base”, and constantly

conducts “Opening Day” activities. In addition, CNOOC

continues to promote “Ocean and People” campus science

popularization image exhibition and fully completes the

project of touring exhibitions in five middle high schools and

primary schools.

Culture PromotionCentered on the development of the enterprise, CNOOC

pushed out a series of external campaigns step by step. The

quantity and quality of reports attained new breakthroughs.

In 2016, CNOOC focused on the themes of “Innovation and

Development”, pushed out 30 key news reports, promoted

to form multiple climaxes. There were altogether over 3,800

plane and internet media reports and 150 TV reports, among

which 63 were CCTV broadcasting news and 7 were CCTV

news. CNOOC completed the key news of “Typical State-

Owned Enterprises Reform” of the Propaganda Department

of the Central Committee of the CPC. Multiple mainstream

central media broadcasted CNOOC in prime time and key

pages which caused intense responses.

The internal news is lively and vivid. Centered on the

two major themes of strict party governance and cost

decreasing and efficiency increasing, China Offshore Oil

Press conducted key reports and organized and planned a

series of deep reports including “Typical Characters for Cost

Decreasing”, “Creativity Survey on Youth Science Research

Personnel” and “Double Innovations”. CNOOC pushed out

video news, completed media channels and realized sub-

public communication and 3D publicity.

68 69


Humanitarian EngagementCNOOC actively advocates and adheres to the simultaneous

fulfilment of financial, environmental and social responsibilities.

CNOOC Marine Environmental and Ecological Protection

Public Welfare Foundation is the unified management

platform for public welfare programmes, such as charity and

environmental protection carried out by CNOOC. We made

efforts to fixed-point poverty alleviation, caring for students,

special public welfare and other philanthropies.

CNOOC has made consistent investment in the past 21

years and dedicates to improving living conditions and

education environment in poverty areas. CNOOC helps

fixed-point poverty alleviation cities and counties in Hainan

Province, Gansu Province, the Inner Mongolia Autonomous

Region and the Tibet Autonomous Region to carry out

accurate poverty alleviation. By the end of 2016, CNOOC

has invested poverty alleviation funds of exceeding RMB

150 million and dispatched 24 talents for poverty alleviation

accumulately; has invested over RMB 270 million to aid the

Tibet Autonomous Region and dispatched 12 managers

accumulately.

CNOOC, by aiding the construction of Hope Schools,

funding needy college students and others, reduced the

financial pressure on students from impoverished families.

“CNOOC University Educational Assistance Fund” jointly set

by CNOOC and China Soong Ching Ling Foundation, has

seen operated for 13 years. A total of RMB 40 million has

been invested for funding more than 13,000 needy students

in 37 universities.

CNOOC continues to support “Mother Water Cellar” project

The development of a company requires strong support from the whole society, which, in turn, requires active contributions from companies in order to develop. As making full efforts to guarantee energy supplies, enhancing environment protection and creating economic values, CNOOC always focuses on livelihood and complies with its obligations and responsibilities of a corporate citizenship, promoting social progress with its real actions. In 2015, the Company continued to commit to humanitarian engagements and voluntary service, making joint efforts to build the community with an investment of RMB 136.08 million in 2016.

CORPORATE CITIZENSHIP

of China Women’s Development Foundation. In 2016, the

“drinking-water safety in the schools”, the “beautiful villages”

and “small-size water conservancy” engineering construction

of “Mother Water Cellar” project was implemented. In

addition, 6 schools in the fixed-point poverty alleviation

programme in the Zhuozi County were provided with 6

solar water purification equipment through “dringing-water

safety in schools” project to solve the problem of excessive

bacteria in school’s water.

Since 2003, CNOOC has been supporting the “Cataract

Patients Supporting Project” of the Lifeline Express and has

accumulatively donated nearly RMB 16 million. Two eye centres

were constructed under the assistance of the Company in

Gansu Province and the Inner Mongolian Autonomous Region.

They provided services radiating to the cooperative cities and

Xiahe County of Gansu Province and Zhuozi County of the

Inner Mongolian Autonomous Region of CNOOC fixed-point

poverty alleviation programme. The three treatment centres

have provided cataract operations to 17,347 poor cataract

patients with the reduced operation fee or for free.

In 2016, CNOOC continued to support “1+1 Legal Volunteer

Programme” implemented by China Legal Aid Foundation in

the no-lawyer counties in remote and border areas. Therein,

the Baoting County of Hainan Province received the key

legal assistance.

CNOOC actively devotes itself into autistic children healing,

deaf children rehabilitation, baby food aid in poor regions

and other fields. On October 20, 2016, “Hearing Rebuilding

Audition Initiation” project held its donation ceremony in

China Hearing and Speech Rehabilitation Center, CNOOC

Public Welfare Fund donated RMB 500,000 to China Disable

CNOOC strengthens the application of new media, the

official WeChat of CNOOC successively won “2016 Most

Influential New Media of Central Enterprise”, “2015-2016

Innovation Award of New Media of China Newspaper”

and “Top 100 WeChat of Energy Enterprises”. The official

WeChat also ranked No.12 for the WeChat influence ranking

among 70 companies in China Newspapers and ranked

No.1 among oil industry. The official WeChat of CNOOC first

entered Tou Tiao in 2016 and has sent 18 terms by now.

Beijing staff football match

Cultural & Sports ActivitiesCNOOC advocates “Happy Work and Happy Life”. CNOOC

enriches employees’ cultural life through various activities.

The Company has carried out the “Health Embraces

CNOOC” health promotion event, actively promoting the

idea of health and exercise and enhancing the management

of physical and mental health of employees; CNOOC has

promoted the secondary units to establish Basketball and

Badminton Association, and conducted small-scale and

diverse mass cultural and sports activities favoured by staff.

70 71


People Union to subsidize 50 hearing impairment children

for artificial cochlea implantation surgeries.

Integration into CommunityWe constantly carry out the heart-warming projects to

help communities cope with difficulties, improve the local

ecological environment, lead cultural constructions in local

communities and effectively improve the communities’ living

standards, so as to build a better home. CNOOC establishes

the periodic communication with community and listens to

rationalization proposal of local governments and community

residents. In 2016, the Company, taking advantage of its

resources, was actively participating in marine rescue on the

premise of ensuring the operation safety. COSL participated

in 22 marine rescue missions, dispatching its ships for 24

times to rescue 17 ships and 33 people.

CSPC has adopted an active public communication

strategy, in addition to the “CSPC Open Day” activity held

in the communities for different objects. It has conducted

the educational support programmes of “Scholarship for

Tomorrow”, “Realizing the Gardeners’ Dream”, “English

Corner in the Community” and “Sunshine Classroom”, jointly

with functional government departments, schools and other

units. Besides, CSPC has proactively conducted the sharing

activities of “Traffic Safety Funny Day”, “Defensive Driving

Learning Activity”, “Road Safety Patrol Inspection System”,

etc. for many times, jointly with Daya Bay government and

petrochemical industrial park.

Adhering to the concept of “respect, mutual trust and win-

win”, CNOOC actively involves into local communities.

Through a series of long-term and systemic community

building activities, such as charitable contributions, voluntary

activities and education funding, The Company benefits local

people. It dedicates to leading local economic development

by project investment and provides job opportunities and

economic benefits for the countries or regions where its

projects are located, profoundly influencing the livelihood of

local people.

The community relationship team of CNOOC Uganda

actively shares information with the communities through

daily communication, regular visits, special communication

meetings, partnership activity, regular meeting of consulting

committee and other means to actively respond to the

opinions, complaints and suggestions from the community and

practically promote the community relationship management.

In accordance to the requirements in environmental and

social influence report, CNOOC Uganda organized and

conducted the popular environmental and social influence

reduction projects such as traffic safety campaign, AIDS

and infectious diseases prevention publicity, sapling

planting and distribution. We set up CNOOC Performance

Scholarship which has benefited over 300 students. CNOOC

also sponsored CNOOC Amasaza football competitions for

successive five years, which successfully promoted the local

sports development and talent cultivation.

CNOOC Southeast Asia built roads for the villages around

the operations sites to protect fish ponds and offshore

passages near the platforms to provide convenient resting

places for the fishers; it also sponsored 3 village primary and

middle schools to complete their remolding and decoration;

conducted 3 terms of training on 90 education workers in 10

villages to improve education quality; provided skill trainings

including cake bakery, marine and cultural cultivation for

the local fishers and housewives to help the local residents

make full use of the local resources and increase income

through product additional value increasing; donated

medical facilities and conducted training on related staff

for the hospital around the operations to improve medical

service quality and provided free medical services to the

villages; built toilets and public sanitation facilities and etc.

Nexen continues to provide charitable donations and

voluntary services to Canadian “Anti-Domestic Violence

Association”, “YWCA Childcare Center”, Calgary Hedge

Center, Asylum Association and Food Relief Office. Nexen

also donated USD 65,000 to the communities for community

bus, and USD 250,000 to Canada Western Summer Games.

Nexen has continued to donate to the Bill Woodward School

near the Long Lake Project to expand school buildings and

establish scholarship. Nexen donated USD 300,000 in total

to the School of Business of University of British Columbia, to

train local economy & management talents; Nexen donated

USD 600,000 to support the project of “Adopt-a-room

Program”, which has benefitted 450 people till now.

“Blue Force” volunteers were cleaning the beach

Voluntary ServicesCNOOC consistently advocates and promotes voluntary

services. In 2016, the Company actively engaged in

various voluntary service activities through Labor Union,

Youth League Committee and Women’s Organization. It

has utilized various forms to help social disadvantaged

groups, popularize maritime knowledge and provide caring

services. Aimed at promoting environmental protection

and public welfare projects for scientific and development

and protection of oceans, hundreds of “Blue Force” young

volunteer service teams and thousands of young volunteers

took part in the CNOOC “Blue Force”, which has built the

communication bridge between young staff and enterprise

and between the enterprise and society.

With the goal of establishing harmonious family, mining area

and the Company, CNOOC encourages the employees

to actively participate in the voluntary services and public

charity activities. It carried out activities, such as cleaning

the beach, campaign of environmental protection, planting

of corals, closing to Blue Force, supporting education,

voluntary supporting agriculture, charity sales and community

services, etc. CNOOC, together with the medium and large-

scale institutions and social media, has launched projects

of large-scale survey on maritime consciousness of the

Chinese youth along with the youth micro-public welfare

action of “Blue Force, Love Marine”, so as to promote the

conservation of marine environment. Since 2015, “Blue

Force” volunteer service teams have been financed by

CNOOC Marine Environmental and Ecological Protection

Public Welfare Foundation and have carried out all kinds of

micro public welfare activities more extensively.

In 2016, CNOOC “Blue Force” continued to adhere to the

strategy of “serving enterprises and contributing to the

society” and drove the voluntary service to standardization,

normalization and branding. It innovated the means of

voluntary service and developed “Blue Force” youth

voluntary service APP and built the “Internet+” public welfare

model. In 2016, CNOOC “Blue Force” was selected in the

Top Ten Voluntary Service Brands of Central Enterprises.

72 73

CNOOC 2016 ANNUAL REPORT MILESTONES 2016

MILESTONES 2016

January 8 “Key Technologies and Application for Improving Recovery Efficiency of Offshore Heavy Oil Polymer

Flooding” recommended by CNOOC won the second prize for National Prize for Progress in Science

and Technology.

February 5 CNOOC signed a strategic Letter of Intent with Baidu.Inc (Beijing). Both parties shall conduct all-

around cooperation like internet information technology and oil and gas business to jointly promote

the innovative development of “internet+”.

February 27 CNOOC Ltd., Zhanjiang Branch signed Letter of Intent with Zhanjiang Government to jointly develop

Wushi Oilfield group. This is the first time for CNOOC to develop offshore oil and gas fields with a

local government.

March 29 “Hai Yang Shi You 981” won the second China Quality Award.

April 9 The first core process module of Yamal LNG project constructed by COOEC was shipped and

delivered to the overseas clients. This was the first time for China to export LNG core process

module, marking the entrance of “Made in China” in international high-end oil and gas equipment

market.

April 26 CNOOC Ltd., was selected into the “Top 100 Hong Kong Stocks in HK Listed Companies” for

successive 6 years. CNOOC ranked No.17 this year and the net profit ranked No.9 in Top 10.

May 3 The construction of two new 160,000 LNG storage tanks in Fujian LNG Terminal was officially

commenced. This was the first big-scale LNG full containment storage tank project completely

applied with independent technologies for design, construction and management in China.

May 10 CNOOC “Blue Force” was selected into the Top Ten Voluntary Service Brands of Central Enterprises.

June 8 Deepwater drilling and completion team of Western South China Sea Oil Management Bureau was

selected as “2015 Ocean Character”.

June 17 35,000 tons of Australian specification diesel for the first ship in Huizhou Refinery was shipped in

Huizhou Harbor, marking Huizhou Refinery successfully opened the refined oil product high-end

market.

Date Event

Date Event

June 27-July 1 President Yang Hua visited UK, France and Netherland and conducted research in Nexen Petroleum

UK, met and talked with the high-levels of BP, Tullow, Total, Schlumberger and Shell, and met Lord

Price, the State Secretary of Office of Government Commerce and communicated with the Chinese

ambassador in the UK, Liu Xiaoming, on the investment in the UK.

July 14 6 key national oil and gas projects and 2 demonstrative projects in the 12th “Five-Year Plan” key

national oil and gas projects undertaken by CNOOC were inspected and approved by the state and

took the top 3 in offshore project group.

July 15 CNOOC ranked class A for successive 12 years and 4 sessions in assessment.

July 22 The fifth Tibet aid project team won “Social Poverty Relief Advanced Team” award in Tibet, which

made it the only team won this award among five Tibet aid central enterprises.

August 9 “Hai Yang Shi You 720” deepwater geological vessel completed the 3D seismic exploration operation

in Barents Sea in the North Pole, enabling China to conduct 3D seismic exploration operation in

global seas.

August 10 CNOOC officially initiated “Management Levels Condensing, Legal Persons Decreasing”, “Zombie

Enterprises Disposal” and special poverty enterprises management.

September 3-4 Yang Hua attended B20 and conducted broad communications with the delegates on key global

economic issues and economic and financial management. During B20, Yang Hua met the Bob

Dudley, BP CEO.

September 23 “Enping 18-1” self-supported oilfield was put into operation; CNOOC owns 100% equity and acts as

operator.

September 26 CNOOC completed the rectification for 144 hidden risks in oil and gas pipeline a year in advance,

which was supervised by the State Council.

October 20 CNOOC Marine Environmental and Ecological Protection Public Welfare Fundation donated RMB

500,000 to China Disabled Union to sponsor 50 hearing impairment children for artificial cochlea

implantation.

October 26 CNOOC Gas & Power Group published the information of natural gas infrastructures, marking

CNOOC marching the first step to the complete publishing of natural gas infrastructures.

November 1 CNOOC and Shell constituted wiht CSPC with 50% of stock was approved by the government for

capital increase; the Phase II Project of Huizhou Refinery was officially delivered.

74 75

CNOOC 2016 ANNUAL REPORT GLOSSARY

Date Event

November 12-20 President Liu Jian visited Indonesia, Singapore and Australia. During that time, he visited the

Indonesian Minister of Energy and Mining Ministry, Colin Barnett of Western Australia and other

foreign government officers and conducted work communication with Xie Feng, the Chinese

ambassador in Indonesia.

November 15 CNOOC Ltd., won the “Best Environmental Responsibility Award” in “2016 Annual Enterprises

Awards” held by Treasury.

November 23 CNOOC won the “The Listed Company with the Most Valuable Brand Value” of “Golden Bauhina

Awards” in “Ta Kung Pao Newspaper”. The CNOOC President Yang Hua won the prize of “The Most

Influential Leader of the Listed Company” of “Golden Bauhina Awards” in “Ta Kung Pao Newspaper”.

December 12 President Xi Jinping met 300 civilized families who won the “National Civilized Family”; Zhao

Yao, who is an employee in the Xijiang Oilfield operation zone in Eastern South China Sea Oil

Management Bureau, together with his wife Liu Ping, were among these 300 families.

December 18 CNOOC imported 100 million tons of LNG in total for 10 years.

December 27 CNOOC won “2016 China Benefit Corporation” award.

GLOSSARY

Drilling Platform

Offshore drilling platforms are marine structures used mainly for drilling exploratory wells. Such platforms, generally divided

into mobile and fixed platforms, are essential for offshore oil & gas exploration and development operations and house drilling,

power, communications, navigation and other equipment, as well as lifesaving and accommodation facilities.

Heavy Oil

Heavy oil is highly viscous crude oil that contains a relatively high level of asphaltenes and resins. This usually refers to those

with ground densities greater than 0.943 and underground viscosities greater than 50 centipoises.

Oil Reservoir

This is the smallest unit for the storage of oil. Oil reservoir layer or oil layer in short refers to the porous strata for the storage of

oil. Not every part of an oil layer will contain oil. Oil reservoir refers to those independent oil-containing areas within an oil layer.

Exploratory Well

Exploratory wells refer to wells drilled within an oil or gas field for acquiring the necessary geological data to determine the

existence, delineate the boundaries, and perform industrial evaluations of oil or gas reservoirs. Those drilled during the

exploration phase can be further divided into prospecting, preliminary exploration and detailed exploration wells.

Adjustment Well

Adjustment wells refer to scattered or clustered wells drilled, in addition to existing well clusters, for improving the development

of oilfields.

Well Logging

Well logging usually refers to geophysical well loggings, in which different forms of well loggers made based on electrical,

magnetic, acoustic, thermal, nuclear and other physical principles, enter wells through the use of well logging cables, to allow

the ground electrical measuring instruments to record continuously along the well bore the various parameters that change

with changes in depth. Underground rock formations, including oil, gas, water, and coal layers and metal deposits, can then be

identified through curves representing these parameters.

Fracking

Fracking, also known as hydraulic fracturing, refers to a technique used to create fractures in the oil layer using hydraulic

pressure. The process involves the use of a fracking device, to inject a large volume of viscous fluid under high pressure into the

oil layer and then fill the resulting fractures with proppants such as quartz sand to increase the permeability of the oil layer and

in turn, increase the amount of water injected or oil produced.

76 77

CNOOC 2016 ANNUAL REPORT GLOSSARY

Oil Spill Response

Oil spill response is the formulation of plans and adoption of measures to control and prevent oil spills and reduce pollution

damage, based on the environment and resources in the potential spill sources and waters within the designated sea areas.

This sees common use in offshore oil exploration and development activities.

LNG

Liquefied natural gas or LNG in short refers to the liquid that forms when natural gas extracted from gas fields cools to a

low temperature under high pressure after undergoing the fluid and acid removal, drying and distillation processes. LNG is

predominantly methane and is colourless, odourless, non-toxic and non-corrosive.

QHSE

The abbreviation QHSE stands for Quality, Health, Safety and Environmental. Established based on the principles of

compatibility of similarities and complementarity of differences, and on the basis of the ISO 9001 and ISO 14001 standards,

GB/T 28000 family of standards and SY/T 6276 Petroleum and Natural Gas Industries – Health, Safety and Environmental

Management System, the QHSE management framework usually refers to the framework that directs and controls the quality,

health, safety and environmental aspects of an organisation.

Coalbed Methane (CBM)

Coalbed methane, which is a coal-associated mineral resource and considered an unconventional form of natural gas, refers

to a kind of hydrocarbon gas (predominantly methane) found trapped within coal beds, mainly adsorbed to the surface of coal

matrix particles, and partly dispersed in the porosity of coal or dissolved in the coalbed water.

Shale Gas

Shale gas specifically refers to an unconventional form of natural gas found trapped within shale formations.

Tight Gas

Tight gas is an unconventional form of natural gas found in sandstone formations with permeability less than 0.1 millidarcy.

Deepwater Semi-Submersible Drilling Platform

Deepwater semi-submersible drilling platform refers to a semi-submersible drilling platform that can operate in deep waters.

Semi-submersible drilling platform, also known as column-stabilised drilling platform, is a kind of mobile drilling platform with

small waterplane area and a large part of the floating structure submerged under water.

FPSO

FPSO (Floating Production Storage & Offloading), namely floating production storage & offloading device, which is an oil & gas

production device combined with production processing, storage output and livelihood & power supply. Its complex in system

and price are far higher than that in oil tanker with same shipping tons. As an important part for marine oil & gas development

system, FPSO device constitutes a complete set of production system generally with underwater oil production devices, and

becomes a high-tech product among offshore engineering vessels at present.

CNOOC Ltd.

CNOOC Limited (Hong Kong: 00883, New York: CEO, Toronto: CNU, www.cnoocltd.com).

COSL

China Oilfield Services Limited (SSE: 601808, HKEx: 02883, www.cosl.com.cn)

COOEC

CNOOC Offshore Oil Engineering Co., Ltd. (SSE: 600583, www.cnoocengineering.com)

China BlueChemical

China BlueChemical Ltd. (HKEx: 03983, www.chinabluechem.com.cn)

CNOOC Gas & Power Group

CNOOC Gas & Power Group Limited (gaspower.cnooc.com.cn)

CNOOC EnerTech

CNOOC Energy Technology & Services Limited

Oil & Petrochemicals Company

CNOOC Oil & Petrochemicals Co., Ltd.

CNOOC and Shell Petrochemicals Company Limited (CSPC)

CNOOC and Shell Petrochemicals Company Limited (CSPC)

78 79

CNOOC 2016 ANNUAL REPORT AGENCY DIRECTORY

AGENCY DIRECTORY

CNOOC Ltd.

Address: No. 25 Chaoyangmenbei Dajie, Dongcheng

District, Beijing, P. R. China

Post Code: 100010

Fax: 010-64602600

CNOOC Research Institute

Address: CNOOC Building, No. 6, Taiyanggong South

Street, Chaoyang District, Beijing, P. R. China

Post Code: 100027

Fax: 010-84523731

CNOOC Bohai Petroleum Administration Bureau

Address: Tower A, Bohai Petroleum Administration Bureau, No.

2121 Haichuan Road, Binhai New District, Tianjin, P. R. China

Post Code: 300459

Fax: 022-66501777

CNOOC Nanhai West Petroleum Administration Bureau

Address: No. 22 Mailbox, Potou District, Zhanjiang,

Guangdong Province, P. R. China

Post Code: 524057

Fax: 0759-3901918

CNOOC Nanhai East Petroleum Administration Bureau

Address: Tower A, CNOOC Building, No. 3168 Houhaibin

Road (Shenzhen Bay Section), Nanshan District, Shenzhen,

Guangdong Province, P. R. China

Post Code: 518000

Fax: 0755-26683184

CNOOC Oil & Petrochemicals Co., Limited

Address: Kaikang CNOOC Mansion, No. 15 Sanqu,

Anzhenxili, Chaoyang District, Beijing, P. R. China

Post Code: 100029

Fax: 010-84527003

China BlueChemical Limited

Address: Kaikang CNOOC Mansion, No. 15 Sanqu,

Anzhenxili, Chaoyang District, Beijing, P. R. China

Post Code: 100029

Fax: 010-84527218

CNOOC Gas & Power Group Co., Ltd.

Address: CNOOC Building, No. 6, Taiyanggong South

Street, Chaoyang District, Beijing, P. R. China

Post Code: 100027

Fax: 010-84526583

CNOOC Petrochemical Import & Export Co., Ltd.

Address: No. 6 Dongzhimenwai Xiaojie, Dongcheng


Post Code: 100027

Fax: 010-84521437

CNOOC Finance Co., Ltd.

Address: No. 25 Chaoyangmenbei Dajie, Dongcheng


Post Code: 100010

Fax: 010-84523878

Zhonghai Trust Co., Ltd.

Address: 36/F, No. 763 Mengzi Road, Huangpu District,

Shanghai, P. R. China

Post Code: 200023

Fax: 021-63086136

CNOOC Donghai Petroleum Administration Bureau

Address: Offshore Oil Tower, No. 388 Tongxie Road,

Changning District, Shanghai, P. R. China

Post Code: 200335

Fax: 021-22830040

China United Coalbed Methane Corporation Ltd.

Address: No. 88 Andingmen Dajie, Dongcheng District,

Beijing, P. R. China

Post Code: 100011

Fax: 010-64298388

China Oilfield Services Limited

Address: No. 201, Haiyou Avenue, Yanjiao Economic &

Development Zone, Sanhe, Hebei Province, P. R. China

Post Code: 065201

Fax: 010-84522133 84522294 84522246

Offshore Oil Engineering Co., Ltd.

Address: No. 199, 15th Haibin Road, Baoshui District, Tianjin

Port, Tianjin, P. R. China

Post Code: 300461

Fax: 022-59898000

CNOOC Energy Technology & Services Limited

Address: No. 6 Dongzhimenwai Xiaojie, Dongcheng District,


Post Code: 100027

Fax: 010-84525111

CNOOC Insurance Ltd.

Address: Unit 1-3A, 38/F, 148 Electric Road, North Point,

Hong Kong, P. R. China

Fax: 00852-21644878

CNOOC International Lease Finance Company



Post Code: 100027

Fax: 010-84528731

CNOOC Investment Co., Ltd.



Post Code: 100027

Fax: 010-84528731

China Ocean Oilfields Services (Hong Kong) Limited

Address: Room 2507, 25/F, Harcourt House, 39 Gloucester

Road, Wanchai, Hong Kong, P. R. China

Fax: 00852-25640309

CNOOC Enterprises Co., Ltd.



Post Code: 100027

Fax: 010-84525020

81

BUSINESS

80

CNOOC 2016 ANNUAL REPORT

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