Board of Directors and Management at Todays Meeting Chairman Wang Dongjin CEO Xu Keqiang President Hu Guangjie CFO Xie Weizhi 2
Disclaimer This presentation includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or…
Agenda Challenging Environment Operating Results Performance Highlights Outlook 4
Results Highlights In the first half of 2020, we overcame the impact of COVID-19 pandemic and low oil price, and achieved better-than- expected operating results, demonstrating our management expertise Net Production Net Profit All-in…
Challenging Environment 6
The Worlds Worst Public Health Crisis in a Century The number of confirmed cases of COVID-19 worldwide exceeded 20 million, and the death toll exceeded 700,000 Source: World Health Organization (as at 14 August 2020) 7
The Biggest Global Economic Recession Since the Great Depression The World Bank predicted that the global economy would shrink by 5.2% in 2020 The global economic loss caused by the pandemic between 2020 and 2021 may reach US 9…
The Worst Global Energy Demand Crisis Since World War II IEA predicted that global energy demand would fall by 6% in 2020, the largest decline since World War II Brent and WTI oil prices have both fallen by more than 70% from their 2020…
Operating Results 10
First Half Results Overview Effective prevention of the pandemic Normal production with no project delay in offshore China Zero infection on offshore platforms and vessels Steady progress in production and operation 5 new discoveries…
Make Every Effort to Prevent COVID-19 to Maintain Safe and Stable Production and Operation Prevention of COVID-19 More than 60,000 medical observations and more than 20,000 nucleic acid tests were made Focus on the normalization of…
Exploration Activities 4 new discoveries were made and 20 oil and gas structures were successfully appraised in offshore China, with the success rate of independent exploration wells reaches 45-65% 1 new discovery was made overseas…
Exploration Achievements Offshore China Bohai Kenli 6-1 Appraisal of Kenli 6-1 oil-bearing structure achieved success Located in Laibei lower uplift of Bohai Became the first large-sized oilfield in Laibei lower uplift with…
Exploration Achievements Overseas The 16th discovery, Uaru, was made in Stabroek block in Guyana Discovery well Uaru-1 encountered oil pay zones with a thickness of 29 meters* Further increase the recoverable resources of the…
Pursue Profitable Production Growth Net production reached 257.9 mmboe and hit a record high Net Production (mmboe) Maintained volume with high return in offshore China and 257.9 243.0 reduced high-cost volume in overseas 300…
Production Summary 1H 2020 1H 2019 Crude and Liquids Natural Gas Total Crude and Liquids Natural Gas Total (mm bbls) (bcf) (mm boe) (mm bbls) (bcf) (mm boe) China Bohai 82.1 28.3 86.8 77.2 28.0 81.9 Western South China Sea 20.0…
New Projects in 2020 Peak Production Project Location Status Working Interests (boe/d) Commenced production Liza oil field phase I Guyana 120,000 25% in 2019 Penglai 19-3 oil field block 4 adjustment/ Penglai 19-9 oil field phase…
Progress of Key Projects Lingshui 17-2 Construction Onshore construction: The hull main structure and overall assembly of topsides completed Offshore construction: Subsea pipeline being laid Offshore drilling Successful completion of…
Progress of Key Projects Stabroek Block in Guyana Production of Liza oilfield phase 1 increased steadily Commenced production months ahead of schedule and under budget Less than 5 years from discovery to first oil, which is about half…
Health, Safety and Environment (HSE) HSE are always our top priority OSHA statistics maintained at a good level in the first half Per 200,000 man hours 1H 2020 1H 2019 Rate of Recordable Cases 0.03 0.09 Rate of Lost Workdays…
Cost Analysis Opex DD&A (US/boe) (US/boe) 7.39 6.50 16.07 14.16 1H 2019 1H 2020 1H 2019 1H 2020 Mainly due to stringent cost control, sales Mainly due to change in production volume increase and RMB exchange rate mix and…
Capex (RMB bn) 35.6 33.7 40 0.2 0.6 6.8 6.4 30 20 18.1 21.7 10 8.6 6.9 0 1H 2019 1H 2020 Exploration Development Production Others Note: Above amounts exclude capitalized interest of RMB1.6 bn and RMB1.3 bn in…
Dividend 2020 interim dividend: HK0.20 per share (tax inclusive) Dividend yield of 7.9%(1) payout ratio of 77.5%(2) Time arrangement: Book close period: September 7 September 11 Payment date: October 16 (1) Based on…
Performance Highlights 29
Timely Adjusted the Operating Strategy Adjusted annual Capex plan and production target 2020 Capex Plan 2020 Production Target (RMB bn) (mm boe) 85-95 520-530 505-515 75-85 600 100 80 38% 30% 36% 34% 400 60 40 62% 70%…
Multiple Measures for Cost Control and Efficiency Enhancement Via management and technology enhancement, operational cost of exploration have been reduced by 10.5% YoY Increased workload and promote efficiency of drilling in China…
Improved Efficiency of Production Organization Stronger production organization 393 wells were drilled, and 299 wells were completed, as workload hitting best level in the same period in history Development wells commissioned 24.7%…
Stringent Cost Control to Maintain Competitiveness Improved operation efficiency to lower direct operation costs by RMB 520 million, at same level of workload for well operations Strengthened measures for production growth and…
Technological Innovation Helps Development Promote key technology projects Increased reserves and production by using various technologies (e.g. fine reservoir description, water flooding enhancement and production potential…
Outlook 35
Core Competitiveness Excellent management team and workforce Resource potential in offshore China Diversified asset structure Leading cost advantage Adequate cash flow Low leverage Leverage competitive advantages to promote…
2H 2020 Plan Strive to achieve the annual production and operation goals Production target of 505-515 mmboe Capex plan of RMB75-85 billion Promote construction of new projects steadily Promote cost control and enhancement of…
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