China National Offshore Oil Corporation (CNOOC)

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Type State-owned
Traded as SEHK: 0883 ; NYSE: CEO
Founded 1982
Headquarters Beijing, China
Key People Fu Chengyu (Chairman), Yang Hua (CEO)[1]
Revenue RMB 240.94 billion (approx. US $38.64 billion ), 2011.[2]
Net Income RMB 70.26 billion (approx. US$11.27 billion), 2011.[3]
% change over previous year +29.1%[4]
Total Assets RMB 384.26 billion (approx. US$61.62 billion), end 2011.[5]
Total Equity RMB 262.86 billion (approx. US$42.15 billion), end 2011.[6]
Employees 10 063 (end 2012)[7]

Global Snapshot

Current Global Profile

CNOOC Ltd is the listed unit of the China National Offshore Oil Corporation[8] and is listed on the New York and Hong Kong stock exchanges.

The CNOOC Group is China's largest producer of offshore crude oil and natural gas and mainly engages in exploration, development, production and sales of oil and natural gas. The Group has four major producing areas in offshore China and has overseas assets in Indonesia, Australia, Nigeria, Argentina and the US, among others. As of December 2010, the company's overseas proved reserves and production accounted for approximately 25.4% and 20.1% of operations respectively.[9] At the end of 2011 the CNOOC Group owned net proven reserves of approximately 3.19 billion barrels of oil equivalent (joe) and average daily net production was 909,000 boe per day.[10]

In 2005, CNOOC withdrew an $18.5 billion takeover bid it had made for US oil and gas producer Unocal in the face of strong political opposition in the US. However, the company said that its bid had been based on purely commercial objectives.[11]

Company Report Highlights

Chairman Chungyu summed the year's activities up in the company report as “a new era of growth”. The stock price appreciated by 51.1% over the year and CNOOC Ltd was the leader of Hong Kong’s blue chip companies. The year saw a significant increase in production, breakthroughs in exploration, and "remarkable financial results". In 2010 Mr. Chungyu stepped down from his position as CEO to become Chairman of CNOOC.

Net production over 2010 saw a 44.4% increase on 2009 figures. 13 new discoveries were made, including the deepwater discovery of Liuhua 29-1, and 9 new oil and gas fields commenced production. Overseas development also made progress as the business moved into South America and the Middle East, as well as making its debut in the shale gas business.

The report recognizes that, with the rapid growth of production volume, the pressure on finding new reserves and expanding the current reserve base has increased significantly. In 2011, the company’s annual production target is 355 to 365 million boe, and over the next five years the production target of the compound annual growth rate is between 6% and 10%.[12]

Official Accreditations and Global Perceptions


EITI Supporter Status

As of December 2011, CNOOC was not a supporter company of the Extractive Industries Transparency Initiative (EITI).

UN Global Compact

As of December 2011, CNOOC was not a participant in the UN Global Compact.

CSR Review

CNOOC's 2010 Annual Report[13] highlights the following achievement in corporate social responsibility:

  • The company received the award for “Best Chinese Company” in the “Corporate Governance Asia Recognition Awards 2010".
  • In 2010 there was no accident causing critical casualties and HQ organized numerous training session to improve the emergency response capability, in which more than 400 employees participated.
  • CNOOC constructed three pipelines to bring natural gas from south Bohai Bay to the oil fields in west Bohai Bay so that natural gas can be used for power generation and thus reduced carbon emissions in the area.
  • Continued support for charitable activities in developing infrastructure in Tibet and donations to the "Mother's Water Cellar" project.
  • Assistance to children in various provinces of China through construction of schools, provision of stationary and books, and monetary donations.

External Coverage

  • In 2008 CNOOC was alleged to have been cooperating on oil and gas exploration in Myanmar with a company run by a family notorious for its heroin-trafficking activities. There were also reports that Burmese citizens have been detained and questioned by government authorities following a dispute over working conditions at CNOOC in May 2007, during which they threw stones at the company's office to protest against low wages and long working hours.[14]
  • CNOOC has been accused of human rights abuses and land theft related to an oil prospecting venture on the isolated Ramree Island in the western Arakan state of Burma. Reports say that the Arakan region is particularly exposed to Chinese corporate control and influence, impact on local peoples' rights. The accusations range from land seizure to extensive pollution of rice fields and water systems with oil waste.[15]
  • A 2011 oil spill from China's Penglai oil field, partially owned by CNOOC, polluted more than 840 kilometres of water in the Bohai bay. CNOOC was criticized for concealing the incident, the announcement of which was delayed for over a month, and for neglecting the public's right to knowledge of major accidents.[16]

Global Operations by Country


Main article: CNOOC Operations in Iraq


Main article: CNOOC Operations in Iran


Main article: CNOOC Operations in Kenya


Main article: CNOOC Operations in Uganda


  1. "Annual Report 2010, CNOOC, 2011.
  2. "Annual Report 2011, CNOOC.
  3. "Annual Report 2011, CNOOC.
  4. "Annual Report 2011, CNOOC.
  5. "Annual Report 2011, CNOOC.
  6. "Annual Report 2011, CNOOC.
  7. "About us, CNOOC, retrieved 24 October 2013.
  8. "Cnooc bags oil field deal in Iraq, China Daily, 18 May 2010.
  9. "Annual Report 2010, CNOOC, 2011.
  10. "About us, CNOOC, retrieved 18 December 2011.
  11. "Chinese oil firm drops Unocal bid, Guardian, 2 August 2005.
  12. "Annual Report 2010, CNOOC, 2011.
  13. "Annual Report 2010, CNOOC, 2011.
  14. "Treasury Sanctions On Myanmar Traffickers Implicate CNOOC, Forbes, 27 February 2008.
  15. "Chinese Oil Giant Accused of Human Rights Abuses in Burma, Irrawaddy, 24 October 2008.
  16. "China needs zero tolerance for concealing major accidents, People's Daily Online, 8 July 2011.