CNOOC : 2019 First Quarter Review

2019 First Quarter Review

Financial and Operating Highlights for the Quarter Ended March 31, 2019

Disclaimer

This presentation includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate under the circumstances. However, whether actual results and developments will meet the expectations and predictions of the Company depends on a number of risks and uncertainties which could cause the actual results, performance and financial condition to differ materially from the Company's expectations, including those associated with fluctuations in crude oil and natural gas prices, the exploration or development activities, the capital expenditure requirements, the business strategy, whether the transactions entered into by the Group can complete on schedule pursuant to the terms and timetable or at all, the highly competitive nature of the oil and natural gas industries, the foreign operations, environmental liabilities and compliance requirements, and economic and political conditions in the People's Republic of China. For a description of these risks and uncertainties, please see the documents the Company files from time to time with the United States Securities and Exchange Commission, including the Annual Report on Form 20-F filed in April of the latest fiscal year.

Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realized or, even if substantially realized, that they will have the expected effect on the Company, its business or operations.

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Overview

Operation Highlights

Financial Results

Net production remained stable YoY and reached 120.1 mm boe

4 new discoveries and 10 successful appraisal wells

Egina oil field and Huizhou 32-5 oil field comprehensive adjustment/Huizhou 33-1 oil field joint development project came on stream, other new projects progressed smoothly

Oil and gas sales revenue of RMB 42.05 billion, down 1.1% YoY

Capex of RMB 14.08 billion, up 45.8% YoY

Realized oil price of US$ 60.78/bbl, down 4.3% YoY

Realized gas price of US$ 6.88/mcf, up 6.3% YoY

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Production Summary

2019Q12018Q1

	Crude and	Natural Gas	Total	Crude and	Natural Gas	Total
	Liquids			Liquids
	(mm bbls)	(bcf)	(mm boe)	(mm bbls)	(bcf)	(mm boe)
China
Bohai	38.7	15.0	41.2	38.8	15.0	41.3
Western South China Sea	9.5	26.3	14.0	9.5	24.6	13.6
Eastern South China Sea	16.9	34.6	22.7	16.7	26.8	21.2
East China Sea	0.4	4.6	1.2	0.4	5.3	1.3
Subtotal*	65.5	80.6	79.3	65.5	71.9	77.5
Overseas
Asia (Ex. China)	2.9	13.5	5.2	6.2	14.1	8.8
Oceania	0.1	3.9	0.9	0.3	6.8	1.6
Africa	8.9	-	8.9	5.9	-	5.9
North America (Ex. Canada)	5.2	11.9	7.2	4.5	11.9	6.4
Canada	6.2	1.3	6.4	5.8	3.5	6.3
South America	2.9	13.9	5.3	2.6	15.2	5.2
Europe	6.6	1.3	6.9	7.9	2.3	8.3
Subtotal	32.8	45.9	40.8	33.1	53.8	42.6
Total**	98.3	126.5	120.1	98.6	125.7	120.1

*Including other production from onshore China, which is approximately 0.3 mm boe in Q1 2019 and approximately 0.04 mm boe in Q1 2018.

**Including our interest in equity-accounted investees, which is approximately 5.1 mm boe in 2019 Q1 and 5.2 mm boe in 2018 Q1. In 2019 Q1, production percentage of China and overseas was 66% v.s. 34%; Crude liquids and natural gas was 82% v.s. 18%.

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Revenues and Capital Expenditure

(unaudited)	2019Q1	2018Q1	Change	2019Q1	2018Q1
	RMB millions		%	USD millions*
Sales Revenue
Crude and Liquids	36,787	38,001	-3.2%	5,466	5,977
Natural Gas	5,262	4,535	16.0%	782	713
Marketing Revenue, net	682	341	100.0%	101	54
Others	1,468	1,798	-18.4%	218	283
Total Revenue	44,199	44,675	-1.1%	6,567	7,027
Capital Expenditures**
Exploration	3,284	1,901	72.8%	488	299
Development	8,036	5,963	34.8%	1,194	938
Production	2,571	1,775	44.8%	382	279
Others	185	16	1056.3%	27	3
Total Capex	14,076	9,655	45.8%	2,091	1,519
Average Realized Prices
Oil (US$/bbl)				60.78	63.50
Gas (US$/mcf)				6.88	6.47

*Converted to US dollars at RMB6.7303=USD1.00 for 2019Q1; RMB6.3582=USD1.00 for 2018Q1.

**Excluding capitalized interests of RMB 784 million and RMB 578 million in 2019 Q1 and 2018 Q1 respectively.

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