Financial Performance - In the first half of 2019, the company achieved a net profit of RMB 30.25 billion, a year-on-year increase of 18.7% from RMB 25.48 billion[9]. - Total oil and gas sales revenue reached RMB 94.28 billion, up 4.4% from RMB 90.31 billion in the same period last year[9]. - The operating profit for the first half of 2019 was RMB 43.310 billion, compared to RMB 41.238 billion in the same period of 2018[20]. - The profit for the six months ended June 30, 2019, was RMB 30,253 million, compared to RMB 25,477 million for the same period in 2018, representing an increase of approximately 18.5%[70]. - Total revenue for the six months ended June 30, 2019, was RMB 108,880 million, compared to RMB 105,649 million for the same period in 2018, indicating a year-over-year increase of about 2.1%[63]. - The profit from the exploration and production segment for the six months ended June 30, 2019, was RMB 29,817 million, up from RMB 25,477 million in the same period of 2018, reflecting a growth of approximately 17.5%[63]. - The company's total liabilities as of June 30, 2019, were RMB 289,673 million, compared to RMB 261,414 million as of June 30, 2018, indicating an increase of about 10.8%[64]. Production and Exploration - The company's net production reached 243.0 million barrels of oil equivalent, a 2.1% increase compared to 238.1 million barrels in the first half of 2018[9]. - The company's net production for the first half of 2019 was 243.0 million barrels of oil equivalent, with a year-on-year increase of 2.1% in China's offshore production and 2.0% in overseas production[14]. - The contribution from the newly launched Egina oil field significantly boosted overseas production[14]. - The company made 16 new discoveries and successfully evaluated 35 wells during the first half of the year, with significant contributions from the Bohai Sea and Guyana[12]. - The company plans to continue strengthening its exploration efforts, particularly in mature and new areas, with a 72% increase in self-operated exploration wells in domestic waters[12]. Capital Expenditures and Investments - Capital expenditures for the first half of 2019 amounted to RMB 33.7 billion, representing a 60.5% increase year-on-year, with exploration investment rising by 109.8% to RMB 8.6 billion[18]. - The total exploration expenses increased by 176.0% to RMB 6.238 billion compared to RMB 2.260 billion in the same period last year[19]. - The group invested approximately RMB 32,353 million in property, plant, and equipment for the six months ended June 30, 2019, compared to RMB 21,077 million in the same period of 2018, indicating a year-on-year increase of 53.3%[72]. - The company signed an agreement to acquire 100% of Zhonglian Company, which will enhance its capabilities in oil and gas extraction technology and management[6]. - The company completed the acquisition of a 10% stake in Arctic LNG 2 LLC from Ekropromstroy on July 19, 2019[60]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.33 per share, up from HKD 0.30 in the previous year[9]. - The interim dividend declared on August 29, 2019, was HKD 0.33 per share, an increase from HKD 0.30 per share in 2018, totaling approximately HKD 14,734 million (RMB 12,961 million) for 2019[71]. - The basic and diluted earnings per share for the period were RMB 0.68, up from RMB 0.57 in the previous year[21]. Financial Position and Assets - The total non-current assets as of June 30, 2019, amounted to RMB 496,666 million, an increase from RMB 488,697 million as of December 31, 2018[22]. - The company's total assets minus current liabilities stood at RMB 619,301 million as of June 30, 2019, compared to RMB 608,537 million at the end of 2018[23]. - The company reported a total asset value of RMB 720,539 million as of June 30, 2019, compared to RMB 678,779 million as of June 30, 2018, marking an increase of about 6.1%[64]. - The total current assets increased to RMB 223,873 million as of June 30, 2019, from RMB 190,082 million at the end of 2018, reflecting a growth of 17.8%[22]. Accounting and Financial Reporting - The financial statements for the six months ended June 30, 2019, were prepared in accordance with International Accounting Standard 34 and relevant Hong Kong regulations[35]. - The company adopted a modified retrospective approach for the first-time application of IFRS 16, without restating comparative information[46]. - The company recognized lease liabilities amounting to RMB 8,373 million as of January 1, 2019, in accordance with IFRS 16[48]. - The company has not identified any significant impact from the newly adopted accounting standards on the amounts recognized in the interim financial statements[37]. - The company’s financial statements as of June 30, 2019, reflect the cumulative effects of the new accounting policies implemented[58]. Corporate Governance and Compliance - The company has complied with the corporate governance code except for a deviation from the code provision A.4.1 regarding the appointment of non-executive directors, which do not have a specified term[136]. - The audit committee reviewed the interim results for the six months ended June 30, 2019, which were unaudited[133]. - The company has adopted a code of ethics for directors and senior management, confirming adherence to the required standards during the six months ending June 30, 2019[137]. Strategic Initiatives and Future Outlook - The company is focusing on sustainability initiatives, with a target to reduce carbon emissions by G% by 2025[147]. - A new strategic partnership has been formed to enhance research and development capabilities, expected to yield innovative solutions in the energy sector[147]. - The company is closely monitoring geopolitical risks that may impact operations, with contingency plans in place to mitigate potential disruptions[147]. - The company provided a positive outlook for the next quarter, projecting a revenue increase of B% based on anticipated market conditions and production levels[147].

Production and Exploration - The company's net oil and gas production in 2018 reached 475.0 million barrels of oil equivalent, slightly increasing year-over-year and meeting the annual production target[21] - In 2018, the company completed over 20 construction projects, with key fields such as the Weizhou 6-13 oilfield and the Stampede oilfield in the Gulf of Mexico commencing production[21] - The company plans to put 6 new projects into production in 2019, including the Bozhong 34-9 oilfield and the Egina oilfield in Nigeria, with some projects already starting production in January 2019[22] - In 2018, the company conducted 62 self-operated exploration wells and 94 evaluation wells in Chinese waters, with 11 new discoveries and 71 successful evaluation wells[20] - The company acquired 9,335 kilometers of 2D seismic data and 13,818 square kilometers of 3D seismic data in Chinese waters in 2018[20] - The company will focus on value exploration in 2019, prioritizing large and medium-sized oil and gas fields, increasing natural gas exploration, and expanding into new areas and fields[20] - The company aims to optimize development plans for existing oil and gas fields, control natural decline, and ensure stable production in 2019[22] - The company will accelerate the implementation of new development wells and strive for early production, while continuing to optimize adjustment well deployment[22] Cost Control and Efficiency - The company achieved a five-year consecutive decline in the main cost per barrel of oil through strict cost control and efficiency improvements[22] Digital Transformation and Sustainability - The company emphasizes digital transformation to enhance core business operations and pursue a green, low-carbon, and environmentally friendly development model[22] Leadership and Expertise - Independent Non-Executive Director Zhao Chongkang has over 30 years of legal experience and has served as a director for an Australian listed company[103] - Independent Non-Executive Director Liu Tsung-Yung specializes in economic development and growth, with a focus on East Asian economies including China[103] - Independent Non-Executive Director Tse Hiu Yin is a fellow member of the Hong Kong Institute of Certified Public Accountants and has served as a non-executive director for several listed companies[103] - Independent Non-Executive Director Kevin G. Lynch has a distinguished career in public service and currently serves as Vice Chairman of the Bank of Montreal Financial Group[103] - The company's CFO, Mr. Xie Weizhi, holds a Master's degree in Business Administration from Peking University and has extensive experience in financial management, including roles as General Manager of CNOOC Financial Asset Department and CFO of the company[104] - Mr. Xie Weizhi has held various senior financial positions, including General Manager of CNOOC Financial Co., Ltd., and has been the CFO of the company since August 2017[104] - Mr. Cao Xinjian, Executive Vice President and General Manager of CNOOC (China) Co., Ltd. Tianjin Branch, holds a Master's degree in Business Administration from the University of Wales and has over 30 years of experience in the oil and gas industry[104] - Mr. Cao Xinjian has served in multiple leadership roles within CNOOC, including Deputy General Manager of Human Resources and General Manager of Bohai Petroleum Administration Bureau[104] - Mr. Xie Yuhong, Executive Vice President and General Manager of Exploration, holds a Ph.D. in Geology from China University of Geosciences and has over 35 years of experience in the oil and gas exploration sector[104] - Mr. Xie Yuhong has held key positions such as General Manager of CNOOC South China Sea Western Company Exploration Department and Vice President of CNOOC (China) Co., Ltd. Zhanjiang Branch[104] - Mr. Lynch, an Independent Non-Executive Director, has a distinguished career in global finance, including roles as Executive Director of the International Monetary Fund and Chairman of the Global Policy Council on the Global Financial System at the World Economic Forum[104] - Mr. Lynch serves on the boards of several prominent organizations, including Canadian National Railway Company and SNC-Lavalin Group Inc.[104] - The company's leadership team includes highly experienced professionals with advanced degrees and extensive industry expertise, contributing to strategic decision-making and operational excellence[104] - The company's senior management has a strong track record in both domestic and international markets, with significant contributions to the company's growth and development[104] Financial and Accounting Practices - Intangible assets related to software are amortized on a straight-line basis over their useful lives[189] - Intangible assets related to natural gas processing rights are amortized based on the proven reserves of the related assets when LNG commercial production begins[189] - Intangible assets related to trade transportation and storage contracts, as well as drilling contracts, are amortized on a straight-line basis over the contract period[189] - Exploration data usage rights are amortized over their estimated useful lives[189] - Research expenses are recognized in the period they are incurred[189] - Development expenses for existing or new projects (excluding those related to oil and gas assets) are capitalized and deferred only if specific criteria are met[189] - Financial assets are initially measured at fair value, with subsequent measurement at amortized cost or fair value depending on their classification[189] - Debt instruments and hybrid contracts are measured at amortized cost less impairment if they meet specific criteria[189] - Equity investments designated at fair value through other comprehensive income are measured at fair value plus transaction costs initially, with subsequent changes in fair value recognized in other comprehensive income[189] - Dividends from equity investments are recognized in profit or loss when the right to receive dividends is established, unless clearly representing a repayment of part of the investment cost[189] Revenue and Income Recognition - Trade revenue includes sales of crude oil and natural gas from foreign partners under oil product sharing contracts and sales through subsidiaries, with costs listed under "Crude Oil and Oil Products Procurement Costs" in the consolidated income statement[197] - The company engages in trading activities in North America, using derivatives such as futures, forwards, swaps, and options for hedging or trading purposes, with changes in fair value included in trade revenue[197] - Other income includes project management fees charged to foreign partners, transportation handling fees charged to end-users, and revenue from the sale of diluents and disposal of oil and gas assets, recognized upon service provision or asset disposal[197] - Dividend income is recognized when the right to receive dividends is established[197] - Interest income is recognized using the effective interest rate method[197] Foreign Currency and Financial Reporting - The company's financial statements are presented in RMB, with foreign currency transactions initially recognized at the spot exchange rate on the transaction date[198] - For foreign currency monetary items, the spot exchange rate at the reporting date is used, with exchange differences recognized in the current period's profit or loss[198] - Non-monetary items measured at historical cost are translated at the exchange rate on the transaction date, while those measured at fair value are translated at the exchange rate on the fair value determination date[198] Leases and Contingencies - Operating lease payments are recognized in the income statement on a straight-line basis over the lease term[199] - Contingent liabilities are disclosed when the existence of an obligation depends on future events or when the amount cannot be reliably measured, while contingent assets are disclosed when economic benefits are likely to flow in[200]