Dear shareholders,?
As the year renews, we forge ahead with dedication. Looking back on 2025, our world, our times, and history were changing in ways like never before, accompanied by significantly heightened uncertainties. In the face of the severe and complex external situation and the downward pressure from volatile international oil prices, CNOOC Limited pursued progress while maintaining stability. We endeavored to boost reserves and production with a pragmatic and enterprising approach; accelerated innovation and development with a race-against-time spirit; ensured safety and environmental protection with an unrelenting sense of responsibility; focused on cost reduction and efficiency enhancement through practical and effective measures, thereby successfully accomplishing our annual goals.
Oil and gas reserves lay the foundation for steady and longterm growth. In 2025, the Company achieved significant results in exploration by adhering to the value-driven exploration principle. Our oil and gas reserves reached new heights, and we were honored with the “Global Best NOC Explorer” Award for the first time. Aiming to discover large and medium-sized oil and gas fields, we have made significant exploration breakthroughs in areas like shallow lithology. Meanwhile, we successfully discovered and appraised multiple oil and gas fields both domestically and internationally, and acquired several exploration blocks, thereby solidifying the resource foundation for our longterm growth.
Oil and gas production is essential to ensuring a stable energy supply. In 2025, we accelerated key projects implementation and continuously improved the “quantity, quality and efficiency” of production capacity construction, with 16 new projects successfully coming on stream. We achieved remarkable results in the development of producing oilfields, with reserve utilization rate and recovery rate continuously improving and natural decline rate remaining stable. Net oil and gas production for the year of 2025 reached a new record high of 777.3 million BOE, representing a year-on-year increase of 7%. Offshore oil and gas has become a critical contributor to China’s reserves and production growth.
Green and low-carbon development stands as a strategic choice for transition and upgrading. In 2025, the Company made solid progress in acquiring large-scale offshore wind power resources and advancing demonstration projects, while emerging businesses such as CCS/CCUS developed in a steady and orderly manner. Adhering to the integrated development of oil and gas business with new energy business, the world’s first 16MW tension leg floating wind power platform project and the Hainan CZ7 offshore wind project were successively launched; China’s first offshore CCUS demonstration project was successfully put into operation at Enping 15-1 platform of South China Sea; and solid progress was made in the feasibility studies for the “onshore carbon offshore storage” initiative and the integrated energy demonstration projects covering oil, gas, electricity, hydrogen, and carbon.
Technological innovation powers our organic growth. In 2025, the Company achieved remarkable progress in core technological breakthroughs. Reserves and production growth was driven by major scientific and technological initiatives in exploration and development. Milestones were achieved in the independent development of deepwater subsea Christmas trees and control systems. The Company steadily advanced its digital and intelligent transformation, deepened the implementation of the “AI+” initiative. The Company further raised the proportion of unmanned offshore platforms, effectively reduced production losses through typhoon mode operations, and saw its “Shenhai-1” gas field selected for China’s first batch of lighthouse-class smart factories cultivation list.
Safety serves as the fundamental guarantee for operations. In 2025, the Company vigorously implemented targeted safety initiatives, conducted thorough hazard investigation and remediation in key areas, and effectively responded to the impact of natural disasters such as super typhoons, thereby maintaining stable safety performance throughout the year.
Cost reduction and efficiency enhancement serve as a sustainable pathway to value creation. In 2025, the Company achieved operating revenues of RMB398.2 billion and net profits attributable to equity shareholders of the Company of RMB122.1 billion, maintaining profitability resilience. Our all-in cost was US$27.9 per BOE, further strengthening our cost competitiveness. The Company attaches importance to shareholder returns. In order to share the fruits of development with all shareholders, the Board of Directors has recommended a final dividend of HK$0.55 per share (tax inclusive) for 2025.
In 2025, Mr. Wang Dongjin ceased to serve as the Chairman and Non-Executive Director of the Company; Mr. Zhou Xinhuai resigned from his positions as Vice Chairman, Executive Director, and Chief Executive Officer; Mr. Chiu Sung Hong and Mr. Chan Chak Ming ceased to serve as Independent Non-Executive Directors. Recently, Mr. Huang Yongzhang was appointed as Vice Chairman, Executive Director, Chief Executive Officer and President; Ms. Yan Hongtao resigned as Executive Director and President; Ms. Mu Xiuping resigned as Executive Director. On behalf of the Board, I would like to extend our congratulations to Mr. Huang Yongzhang and express our sincere gratitude to all the departing directors for their contributions to the Company’s development during their tenure.
Going forward, the global energy transition will enter a new phase, energy technology innovations will accelerate, and the proportion of new energy will gradually increase. China’s economy is expected to maintain stable growth, offering significant opportunities for the Company’s development. Tapping into the immense potential of marine energy resources, we will adhere to our “First Curve” of oil and gas business while simultaneously creating a “Second Curve” for growth in areas such as new energy and new industries, accelerating the transition from old to new growth drivers and facilitating the transformation of our development model. We will solidify our development foundation by increasing oil and gas reserves and production, empower our growth momentum through value creation, drive industrial upgrading with innovation, build competitive advantages through international expansion, and accumulate growth potential with green and low-carbon initiatives, thus striving to build a worldclass energy and resources group with distinctive maritime characteristics.
A new blueprint unfolds, and the journey ahead calls for unwavering commitment. We sincerely invite all shareholders to join us in a pioneering journey of industrial progress.?
Zhang Chuanjiang ? ?
Chairman
26 March 2026
