CNOOC(00883)2019-04-03 22:15Production 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]