On February 24, the audit results of the 20th meeting of the 18th issuance and Examination Committee of China Securities Regulatory Commission in 2022 were released, and CNOOC’s A-share IPO application was approved. It is disclosed that the company plans to publicly issue no more than 2.6 billion RMB shares and be listed on the main board of Shanghai Stock Exchange. The raised funds will be used to develop the company’s main business and are intended to be used for a number of oil and gas field development projects outside China, including Guyana payara oilfield, Liuhua 11-1 / 4-1 oilfield and Lingshui 17-2 gas field.
grow into the world’s largest pure upstream company
the scale of oil and gas reserves is expected to further expand
CNOOC is a pure upstream company focusing on the exploration, development, production and sales of crude oil and natural gas. At present, CNOOC is the largest offshore oil and gas producer in China and one of the largest oil and gas exploration and development companies in the world. CNOOC Hong Kong shares have been listed for 20 years. The company’s net oil and gas output has increased from 88 million barrels of oil equivalent in 2000 to 528 million barrels of oil equivalent in 2020, a record high and 5.6 times that of the listing period. In the past two years, the company’s output of Chinese crude oil accounted for 80% of the total increment of national crude oil, and continued to maintain the leading position of national oil increment. Since its listing, the company has obtained more than 280 commercial discoveries and 240 oil and gas fields. In 2020, the company’s net proved reserves reached 5.37 billion barrels of oil equivalent, 3.1 times that at the time of listing. CNOOC also participates in many world-class oil and gas projects with assets in more than 20 countries and regions around the world. The Guyana Liza phase II project recently announced to be put into operation ahead of schedule will provide a strong driving force for CNOOC’s output growth.
business performance hit new highs
high dividend returns to investors
By 2020, after the listing of CNOOC Hong Kong shares, the operating revenue increased from 24.2 billion yuan to 155.4 billion yuan, and the total assets increased greatly from 32.6 billion yuan to 721.3 billion yuan. The performance hit record highs, with the operating revenue and total assets 6.4 times and 22.1 times higher than those at the time of listing, respectively. Thanks to effective cost control measures, the company’s oil barrel cost has decreased for seven consecutive years, and its oil barrel profitability ranks at the advanced level of the industry. In addition, CNOOC has always attached importance to shareholder returns and insisted on paying dividends twice a year. The cumulative dividend over 20 years of listing has exceeded 300 billion yuan, ranking fourth among Hong Kong listed companies and first among Energy listed companies. The company also promises that, subject to the approval of the general meeting of shareholders, the annual dividend payment rate will not be less than 40% in the next three years, and the absolute value of the annual dividend will not be less than HK $0.70 per share (including tax).
technology driven development
build a national treasure
CNOOC adheres to the innovation driven strategy, increases the tackling of key core technologies, speeds up the creation of the “source” of original technologies and makes positive progress. Always adhere to the guidance of scientific and technological innovation, strengthen the transformation and utilization of technological achievements, and provide technical guarantee for increasing reserves and production, improving quality, reducing cost and increasing efficiency. Highlight the main business of oil and gas, focus on the construction of exploration and development scientific research system, focus on key directions such as deep water, high temperature and high pressure, heavy oil and low permeability, continue to tackle key problems, and a series of key core technologies have achieved significant phased results.
In 2021, CNOOC independently developed, designed and built the world’s first 100000 ton deep-water semi submersible production and storage platform – “deep sea No. 1” energy station. It indicates that the exploration and development capacity of China’s offshore oil industry has achieved a historic leap from 300 meters to 1500 meters of ultra deep water, opening a new journey for China to officially advance deep-sea oil and gas exploration. So far, CNOOC has achieved full coverage of marine shallow water, deep water and ultra deep water fields with advanced technology and continuously refined scientific and technological innovation ability. The construction of the energy station has achieved three world first technologies and 13 Chinese first technologies, which is a masterpiece in the field of marine engineering equipment in China.
adhere to green and low-carbon development
promote green energy transformation
While pursuing output growth, CNOOC adheres to the concept of green and low-carbon development. First, it produces green products, continuously increases the supply capacity of natural gas and improves the proportion of natural gas output. The successful operation of “deep sea No. 1” atmospheric field will drive the construction of trillion cubic meters of atmospheric area in the South China Sea. By 2025, the company’s planned natural gas production will account for more than 30%; Second, build green factories to promote energy conservation and carbon reduction in the whole process of oil and gas field development. Accelerate the construction of shore power projects and put the first offshore oil field shore power project into operation smoothly; Third, develop green industries, develop new energy businesses on a priority basis, tackle key scientific and technological problems in key areas of new energy, accelerate the development of offshore wind power, form a large-scale development trend, and develop land-based scenery integration projects on a priority basis. During the 14th Five Year Plan period, the company plans to spend 5% – 10% of its capital expenditure on the development of new energy Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) . In 2021, CNOOC’s first 300000 kW offshore wind power project will be connected to the grid with full capacity. At the same time, the demonstration projects of offshore CCS and CCUs have been promoted, and China’s first one million ton offshore carbon dioxide storage project has been launched.
CNOOC said it would actively promote the three major projects of “increasing oil and gas reserves and production, green energy transformation and independent innovation of science and technology”, implement the action of “improving quality, efficiency and upgrading”, constantly improve its value creation ability and bring greater returns to shareholders.
With regard to CNOOC’s A-share listing, the company expressed the hope to introduce domestic capital through A-share listing, gradually improve the shareholder structure, open up new financing channels, better share the company’s development achievements with domestic investors, expand the company’s influence and enhance the corporate image.
