CNOOC Business Model Canvas

CNOOC collaborates with premier technology and oilfield service providers to boost operational efficiency, safety, and sustainability. For instance, partnerships with firms like GE are instrumental in deploying digital twin technology, enhancing predictive maintenance and overall operational effectiveness. These alliances are crucial for advancing intelligent oil and gas field development and sophisticated exploration methods.

CNOOC's key partnerships are a cornerstone of its operational strategy, enabling access to global resources and advanced technologies. These collaborations are vital for mitigating the high risks associated with offshore exploration and production, allowing CNOOC to participate in world-class projects and expand its international footprint.

Collaborations with major international oil companies, such as ExxonMobil and Shell, are instrumental in sharing expertise and financial burdens, particularly in complex offshore environments like the Stabroek Block in Guyana. Partnerships with local governments and national oil companies are essential for navigating regulatory frameworks and securing exploration rights, as seen in ventures in Angola and Nigeria.

CNOOC also relies on specialized technology and oilfield service providers, including firms like GE, to enhance operational efficiency and implement innovative solutions like digital twins. Furthermore, robust relationships with Engineering, Procurement, and Construction (EPC) contractors are critical for the successful execution of large-scale offshore projects, supporting CNOOC's significant capital expenditures, which reached approximately RMB 101.5 billion in 2023.

Finally, alliances with academic and research institutions are driving innovation in exploration theories and production technologies, including advancements in carbon capture and storage (CCUS) and renewable energy integration, ensuring CNOOC's long-term sustainability and technological leadership.

CNOOC's refining and chemical operations, while secondary to its upstream focus, are crucial for adding value to its hydrocarbon resources. These downstream activities transform crude oil and natural gas into a range of refined petroleum products and essential chemicals, thereby broadening the company's revenue base and enhancing its integrated energy model.

In 2023, CNOOC's refining segment processed approximately 15.9 million tons of crude oil. The company's chemical segment, meanwhile, produced around 1.3 million tons of ethylene and its derivatives, contributing significantly to its overall financial performance.

CNOOC's key activities encompass the entire oil and gas value chain, from finding new reserves to producing and processing hydrocarbons. The company also invests in technological advancements and green energy initiatives to ensure long-term sustainability and efficiency.

In 2024, CNOOC's exploration efforts yielded 11 new discoveries and 30 appraised structures, underscoring its success in expanding its resource base. The company's production segment saw a 7.2% increase in net output, reaching 726.8 million BOE by year-end, boosted by projects like Guyana's Payara. Downstream, CNOOC processed approximately 15.9 million tons of crude oil in 2023, with its chemical segment producing 1.3 million tons of ethylene.

CNOOC relies heavily on its highly skilled workforce, comprising geologists, engineers, and operational specialists. This expertise is fundamental to navigating the complexities of its exploration and production (E&P) activities, particularly in challenging offshore environments. Their deep knowledge in areas like reservoir management and project execution directly translates to operational excellence and adherence to stringent safety standards.

In 2024, CNOOC demonstrated its global reach and commitment to employment by providing over 22,000 jobs across more than 20 countries and regions. This extensive workforce underscores the company's operational scale and its reliance on diverse technical talent to achieve its strategic objectives in the global energy sector.

CNOOC's key resources are its extensive offshore oil and gas reserves, advanced technological capabilities in exploration and production, a highly skilled global workforce, and strong financial backing. These assets are crucial for maintaining its position as a leading energy producer.

The company's reserve base, totaling 7.27 billion barrels of oil equivalent (BOE) by the end of 2024, provides a decade-long reserve life. CNOOC's investment in cutting-edge infrastructure, like the Haikui-1 FPSO, and its workforce of over 22,000 employees across more than 20 countries highlight its operational capacity.

Financially, CNOOC reported a capital expenditure of RMB132.5 billion in 2024 and projects RMB125 billion to RMB135 billion for 2025, demonstrating its significant investment capacity. This financial strength, combined with its state-owned enterprise status and alignment with China's national energy strategy, further solidifies its operational foundation.

CNOOC leverages its profound expertise in offshore exploration and production, especially in demanding deepwater and harsh conditions. This specialized knowledge is a cornerstone of its value proposition, attracting partners and securing high-value projects.

The company's commitment to innovation is evident in its development of cutting-edge deepwater technologies. For instance, CNOOC successfully deployed Asia's first cylindrical FPSO, 'Haikui-1,' and Asia's tallest deepwater jacket platform, 'Haiji-2,' showcasing its technical prowess and ability to operate in challenging offshore frontiers.

CNOOC guarantees a dependable energy supply by consistently increasing oil and gas production, evidenced by a record 677 million barrels of oil equivalent in 2023, ensuring national energy security.

The company maintains a competitive edge through operational efficiency, achieving an all-in cost of $28.52 per barrel of oil equivalent in 2024, a 1.1% decrease from the prior year.

Leveraging deep expertise in challenging offshore environments, CNOOC deploys advanced technologies like the 'Haikui-1' FPSO, demonstrating its capability in high-value deepwater projects.

CNOOC is committed to sustainability, increasing natural gas in its portfolio and investing in offshore wind and CCUS projects to reduce its environmental impact.

CNOOC actively cultivates relationships with a broad financial audience, from individual investors to seasoned professionals and academic researchers. This engagement is facilitated through the provision of detailed financial data, annual reports, and ESG disclosures, fostering transparency and trust.

The company's commitment to shareholder value is underscored by its consistent dividend policy. For instance, CNOOC declared a final dividend of RMB 0.70 per share for the fiscal year 2023, reflecting a strong focus on delivering returns to its investors.

CNOOC's customer relationships are built on long-term supply contracts for crude oil, natural gas, and LNG, providing stability for industrial clients and distributors. These agreements ensure consistent demand, contributing to CNOOC's substantial production output, which reached approximately 677 million barrels of oil equivalent in 2023.

Key partnerships, such as its LNG supply deals with Venture Global and ADNOC, highlight CNOOC's commitment to dependable global energy supply. These collaborations solidify its market position by securing significant LNG volumes for future delivery.

CNOOC also actively manages relationships with financial stakeholders, offering transparent data and a consistent dividend policy, such as the RMB 0.70 per share final dividend declared for 2023, to foster investor trust and deliver shareholder value.

CNOOC utilizes extensive refining and chemical distribution networks, including pipelines and terminals, to ensure its products reach industrial and commercial customers efficiently. This robust infrastructure is crucial for market access and sales volume.

In 2024, CNOOC's refining segment processed approximately 240 million barrels of crude oil, with its chemical segment producing around 12 million tons of various chemical products. These figures highlight the scale of operations supported by their distribution channels.

The company's transportation fleets, comprising ships and trucks, complement the fixed infrastructure, enabling flexible delivery of refined fuels and chemical feedstocks across diverse geographical markets, thereby solidifying its downstream market presence.

CNOOC's channels are multifaceted, encompassing direct sales to large consumers, international trading operations, extensive distribution networks, digital investor relations platforms, and active participation in industry events. These channels collectively ensure efficient product delivery, global market reach, and robust stakeholder engagement.

Large industrial enterprises, power plants, and commercial businesses are key customers for CNOOC, directly procuring natural gas and refined oil products to fuel their operations. These entities rely on CNOOC for consistent energy supply to maintain productivity and meet their significant energy demands.

In 2024, China's industrial sector, a major consumer of natural gas, continued to drive demand. CNOOC's commitment to providing a stable supply chain is crucial for these customers, especially given the global energy market volatility. Competitive pricing remains a significant factor for these high-volume purchasers.

CNOOC serves a diverse customer base, ranging from national energy companies to international oil firms and large industrial consumers. These clients rely on CNOOC for a consistent supply of crude oil, natural gas, and refined products to power their operations and meet energy demands.

In 2024, the demand from China's industrial sector remained robust, with CNOOC playing a critical role in ensuring stable energy provisions. For example, CNOOC's upstream oil and gas production is fundamental to meeting the needs of domestic energy distributors.

Global investors and financial institutions are also key stakeholders, closely monitoring CNOOC's financial performance and growth prospects. CNOOC's 2023 net profit was RMB 161.95 billion, reflecting its strong financial standing and attracting significant investment interest.

As a global oil and gas producer, CNOOC faces significant expenses from taxes, royalties, and government fees. These costs are not uniform, as they differ greatly depending on the country where CNOOC operates, making them a crucial element of its overall financial outlay.

In 2023, CNOOC's total tax expenses amounted to approximately RMB 91.6 billion. Royalties, which are payments made to governments for the right to extract resources, also represent a substantial cost. For instance, in many of its offshore operations, royalty rates can range from 10% to 20% of production, depending on the specific contract and the field's productivity.

Beyond standard taxes and royalties, CNOOC also contends with various other government levies, such as resource taxes, environmental fees, and specific economic zone contributions. These additional charges, while varying in nature and amount, collectively contribute to the significant financial burden CNOOC manages as part of its global operational footprint.

CNOOC's cost structure is heavily influenced by its substantial capital expenditures for exploration and production, alongside significant operational costs for extracting and processing hydrocarbons. These are further impacted by substantial tax and royalty obligations, as well as depreciation, depletion, and amortization charges reflecting the use of its assets.

In 2024, CNOOC's capital expenditure was budgeted at RMB132.5 billion, with a significant portion allocated to project development. The company's lifting cost in 2023 was approximately $29.3 per barrel of oil equivalent, highlighting its focus on cost efficiency.

Furthermore, CNOOC incurs considerable costs related to ESG compliance, including investments in carbon reduction technologies and environmental protection initiatives. In 2023, the company's tax expenses alone amounted to approximately RMB 91.6 billion.

CNOOC’s business model includes revenue from selling refined petroleum products and chemicals. While not the largest segment, these sales represent a crucial step in adding value to their upstream oil and gas production. This integrated approach allows them to capture more of the value chain.

In 2024, CNOOC's refining and chemicals segment contributed significantly to its overall financial performance. For instance, the company reported that its refining and chemicals business achieved substantial sales volumes, reflecting strong demand for its downstream products.

CNOOC's revenue streams are primarily built upon the sale of crude oil and natural gas, with significant contributions from refined petroleum products and chemicals.

In 2024, CNOOC's oil and gas sales were a substantial RMB355.6 billion, underscoring the dominance of its upstream operations.

Additionally, revenue is bolstered by equity stakes in international joint ventures, such as those in Guyana and Brazil, and income from oilfield services and financial investments.