Group 1 - The first intelligent acoustic imaging detection system in China's offshore oil and gas engineering industry has been successfully applied at CNOOC Engineering's Tianjin Intelligent Manufacturing Base [1] - The system enhances the quality control of pressure equipment in offshore oil and gas engineering by enabling precise detection of critical areas such as welds and flange interfaces, ensuring safe and stable operation under high-pressure conditions [1] - Traditional detection methods were inefficient and posed safety risks in challenging environments; the new system innovatively incorporates acoustic imaging technology inspired by ship radar [1] Group 2 - The intelligent acoustic imaging system functions like a specialized "acoustic camera," utilizing a matrix of 136 high-sensitivity microphones, with a maximum detection range of 20 meters and a coverage angle exceeding 150 degrees [2] - The system improves detection efficiency by over 60% compared to traditional methods, achieving 100% accuracy; it has already been used to inspect over 1,600 welds and nearly 500 joints in Shell's Nigeria HI project [2]

Core Insights - The Shell Nigeria HI project, undertaken by CNOOC Engineering Co., Ltd., has reached a significant milestone with the completion of the main construction of the upper modules at the Tianjin Intelligent Manufacturing Base, marking a new phase in the collaboration between CNOOC Engineering and Shell [1] - The project is notable as it is the first time CNOOC Engineering has acted as the general contractor for Shell, encompassing design, procurement, and construction responsibilities, which lays a foundation for further expansion into the international high-end oil and gas engineering market [1] Group 1 - The project team is currently in the final debugging phase, aiming for timely delivery by mid-January [1] - Key tasks include conducting pressure tests on process pipelines, which are critical for ensuring the strength and sealing of the pipelines, directly impacting the safety and stability of offshore production [1] - The project has successfully completed 68 pipeline pressure test packages, with over 37,000 meters of cable laid and 1,147 cable connections made, achieving a 99.98% first-pass welding rate for critical path pipelines [2] Group 2 - The project team has implemented an integrated, modular, and standardized operational model to enhance construction efficiency and ensure seamless workflow [2] - Resources are dynamically allocated, with two-shift operations at critical work nodes to effectively safeguard the overall project schedule [2] - The project is on track to start the new year positively, with a focus on maintaining quality and progress under tight deadlines [2]

Core Viewpoint - CNOOC Engineering (海油工程) plans to acquire 49% of the shares of China Offshore Fluor Engineering (中海福陆) for 859 million yuan, aiming to enhance control and optimize management efficiency in the deepwater and new energy engineering sectors [1][2][3] Group 1: Acquisition Details - The acquisition will increase CNOOC Engineering's stake in China Offshore Fluor Engineering from 51% to 100%, allowing for full control [2][3] - The transaction price of 859 million yuan is significantly lower than the assessed value of approximately 4.017 billion yuan [3] - China Offshore Fluor Engineering reported a net profit of 50.81 million yuan for 2024 and 90.91 million yuan for the first three quarters of 2025, indicating strong financial performance [1][3] Group 2: Financial Performance - As of September 30, 2025, China Offshore Fluor Engineering had a net asset value of 4.046 billion yuan and projected revenues of 2.276 billion yuan for 2024 [3] - CNOOC Engineering's financial health is robust, with a debt-to-asset ratio of 39.35% as of September 2025, down from 41.38% at the end of 2024 [3] - The company has consistently increased its net profit, with figures of 854 million yuan, 1.237 billion yuan, 1.809 billion yuan, and 1.404 billion yuan from 2022 to the first three quarters of 2025 [5][6] Group 3: Research and Development - CNOOC Engineering has invested over 1 billion yuan in R&D annually from 2022 to 2024, totaling 4.317 billion yuan over four years [7] - In the first three quarters of 2025, R&D expenses increased by 21.93% to 782 million yuan despite a 13.54% decline in revenue [7] - The company focuses on technological innovation to drive growth, enhancing its capabilities in deepwater and new energy engineering [1][7] Group 4: Market Position and Orders - CNOOC Engineering is a leading contractor in the Asia-Pacific region for offshore oil and gas engineering, with a strong order backlog of approximately 59.5 billion yuan as of the third quarter of 2025 [6] - The company achieved a market contract value of 37.24 billion yuan in the first three quarters of 2025, a year-on-year increase of 124.85% [6]

Core Insights - The successful installation of the Weizhou 11-4 CEPD platform marks a record for the largest and heaviest offshore oil and gas platform in the Beibu Gulf region, with a height of 49.5 meters and a weight exceeding 14,000 tons [1][2] - The platform integrates drilling and oil and gas processing functions, featuring 134 key equipment sets and a 95% localization rate for core components, significantly reducing engineering investment and annual maintenance costs by over 30% [1][2] Group 1 - The Weizhou 11-4 CEPD platform is a multifunctional drilling and production platform, designed and constructed by China National Offshore Oil Corporation (CNOOC), and utilizes floating installation technology due to its size exceeding domestic floating crane capabilities [1][2] - The project employs innovative design and construction techniques, including a slanted leg structure and transition section for the platform's foundation, enhancing load transfer and precise positioning during installation [2] - The platform will serve as a critical facility for the Weizhou 11-4 oil field, which is China's first independently developed oil field in the South China Sea according to international standards, contributing to the establishment of a third gathering center in the Weizhou oil field cluster [2]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 17.661 billion yuan for the first three quarters of 2025, a year-on-year decrease of 13.54%. The net profit attributable to the parent company was 1.605 billion yuan, down 8.01% year-on-year, while the net profit after deducting non-recurring items increased by 7.59% to 1.404 billion yuan [2][6] - In Q3 alone, the company achieved a revenue of 6.343 billion yuan, a decline of 9.34% year-on-year, with a net profit of 507 million yuan, down 7.55% year-on-year. The net profit attributable to the parent company after deductions was 444 million yuan, a decrease of 4.68% [2][6] - The decline in oil prices, along with delivery schedules and typhoon impacts, has put pressure on work volume. However, new overseas contracts have significantly increased, ensuring sufficient orders for future workloads. The potential of offshore oil and gas resources is substantial, and the company is expected to benefit from CNOOC's efforts to increase reserves and production [2][6] - The company completed the construction of 6 jackets and 6 modules on land in Q3, a year-on-year decrease of 25% and 64.71%, respectively. Offshore, it completed 4 jackets and 6 modules, down 42.86% and 57.14% year-on-year. The total length of subsea pipeline laid was 76 kilometers, a decrease of 44.93% [13] - The company has signed new overseas contracts worth approximately 40 billion USD in the Middle East, with total orders on hand amounting to about 59.5 billion yuan, a year-on-year increase of 63.01% [2][6] - The government work report for 2025 highlights the development of deep-sea technology, indicating new opportunities for the company in deep-sea resource development and equipment manufacturing [2][6] Financial Summary - The company expects EPS for 2025-2027 to be 0.54 yuan, 0.60 yuan, and 0.65 yuan, respectively, with corresponding PE ratios of 10.12X, 9.20X, and 8.44X based on the closing price on October 30, 2025 [2][6]

Core Insights - The launch of the Qatar BH EPIC project, valued at approximately $4 billion, marks the largest international offshore oil and gas engineering contract undertaken by a Chinese company, enhancing energy cooperation between China and Qatar and contributing to the Belt and Road Initiative [1][3]. Group 1: Project Overview - The Qatar BH EPIC project is developed by Qatar Energy and is located about 100 kilometers off the eastern coastline of Qatar in the Persian Gulf, with a maximum water depth of approximately 40 meters [3]. - The project encompasses over 60 individual offshore oil and gas facilities, 40 subsea pipelines, and involves design, procurement, construction, transportation, installation, commissioning, as well as modification and decommissioning of existing platform facilities, with a steel processing volume exceeding 130,000 tons [3]. Group 2: Company Strategy and Market Position - The project is a continuation of previous contracts in Qatar, showcasing the company's deep engagement in the Middle East market and its role as a "bridgehead" for overseas projects [5]. - The company has established strong partnerships with major Middle Eastern oil companies, such as Saudi Aramco and Qatar Energy, and has gained high recognition for its comprehensive international engineering contracting capabilities in the region [5]. - Future plans include accelerating international development by integrating domestic standardized design experiences, digital transformation achievements, and complete industrial chain advantages into international project construction [5].

Core Insights - The Qatar BH EPIC project, valued at approximately $4 billion, marks the largest international offshore oil and gas engineering contract undertaken by a Chinese company, enhancing energy cooperation between China and Qatar and contributing to the Belt and Road Initiative [1][3]. Group 1 - The project is located about 100 kilometers off the eastern coastline of Qatar in the Persian Gulf, specifically in the Bul Hanine oil field, with a maximum water depth of approximately 40 meters [3]. - The scope of work includes over 60 offshore oil and gas facilities, 40 subsea pipelines, and involves design, procurement, construction, transportation, installation, commissioning, as well as modifications and decommissioning of existing platforms, with a steel processing volume exceeding 130,000 tons [3][5]. - The project team has conducted in-depth research on contract terms and technical requirements, identifying key challenges and developing a detailed implementation and quality management plan to ensure high standards and quality [5]. Group 2 - The Qatar BH EPIC project is a continuation of the company's efforts in the Middle East, following previous projects such as NFA, NFPS COMP2, ISND5-2, and RUYA, showcasing the company's established relationships with major regional oil companies like Saudi Aramco and Qatar Energy [5]. - The company aims to accelerate its international development by integrating domestic standardized design experiences and digital transformation achievements into international projects, providing comprehensive solutions for marine energy infrastructure in Belt and Road countries [7].

Core Insights - The Qatar BH EPIC project, with a contract value of approximately $4 billion, marks the largest international offshore oil and gas engineering project undertaken by China, enhancing energy cooperation between China and Qatar and contributing to the Belt and Road Initiative [1][3]. Project Overview - The project is located about 100 kilometers off the eastern coastline of Qatar in the Persian Gulf's Bul Hanine oil field, with a maximum water depth of approximately 40 meters [3]. - It encompasses over 60 individual offshore oil and gas facilities, 40 subsea pipelines, and involves design, procurement, construction, transportation, installation, commissioning, as well as the modification and decommissioning of existing platform facilities, with a steel processing volume exceeding 130,000 tons [3]. Strategic Importance - The project is a continuation of previous contracts in Qatar, showcasing the company's deep engagement in the Middle East market and its role as a bridgehead for overseas projects [4]. - The company has established strong partnerships with major Middle Eastern oil companies, such as Saudi Aramco and Qatar Energy, gaining high recognition for its international engineering capabilities [4]. Future Plans - The company aims to accelerate its international development by integrating domestic standardized design experiences, digital transformation achievements, and complete industrial chain advantages into international project construction [4]. - The goal is to provide high-quality, professional, and valuable comprehensive solutions for marine energy infrastructure construction and economic development in Belt and Road countries, while promoting the participation of domestic upstream and downstream enterprises in global markets [4].

Core Insights - The Qatar BH EPIC project marks the largest international offshore oil and gas engineering contract undertaken by a Chinese company, with a total contract value of approximately $4 billion [2][3] - The project is located in the Bul Hanine oil field, approximately 100 kilometers off the coast of Qatar, and involves complex tasks including the design, procurement, construction, transportation, installation, commissioning, and decommissioning of over 60 offshore oil and gas facilities [2] - The project is expected to enhance energy cooperation between China and Qatar, contributing to high-quality international oil and gas collaboration [2] Company Developments - The Qatar BH EPIC project is a continuation of the company's efforts in the Middle East, following previous projects such as NFA, NFPS COMP2, ISND5-2, and RUYA, showcasing the company's growing presence in the region [3] - The company has established strong partnerships with major Middle Eastern oil companies, including Saudi Aramco and Qatar Energy, which has led to high recognition of its international engineering capabilities [3] - Future plans include accelerating international development by integrating domestic standardized design experiences and digital transformation achievements into international projects, thereby providing comprehensive solutions for marine energy infrastructure [3]

Core Insights - China's underwater oil and gas pipeline total length has surpassed 10,000 kilometers, positioning the country among the world's leaders in this field [1] Group 1: Technological Advancements - China's underwater pipeline engineering has achieved significant technological breakthroughs, enhancing its equipment capabilities to an internationally advanced level [2][3] - The country has made strides in the localization of technology, materials, and equipment, with key milestones including the domestic production of pipeline analysis software and automatic welding equipment in 2023 [3] - The successful development of the world's first kilometer-level underwater pipeline automatic launching system is set for deployment in 2024, with further innovations expected by 2025 [3] Group 2: International Expansion - China is actively expanding its underwater pipeline engineering services into international markets, particularly in regions associated with the Belt and Road Initiative [4] - In 2023, Chinese companies have accelerated overseas cooperation, with significant projects completed in countries such as Brunei, Qatar, and Nigeria, totaling over 500 kilometers of underwater pipelines laid [5] - A notable achievement includes securing a $4 billion contract for a project in Qatar, setting a record for Chinese companies in the Middle East [5]