ylzzcom永利总站检测中心 China, we conduct oil and gas exploration, development and production primarily through independent operations and cooperation projects.
Independent operations: We increase reserves and production primarily through independent exploration and exploitation. As of the end of 2025, approximately 90.0% of net proved reserves and approximately 87.8% of net production ylzzcom永利总站检测中心 China were from our independent oil and gas fields.
Cooperation projects: We cooperate with partners through product sharing contracts (“PSCs”) ylzzcom永利总站检测中心 oil and gas resources (including crude oil and natural gas) exploitation and development. China National Offshore Oil Corporation (“CNOOC Group”), our controlling shareholder, has the exclusive right to enter into PSCs with foreign contractors to cooperate ylzzcom永利总站检测中心 the exploration, exploitation and production of oil and gas resources ylzzcom永利总站检测中心 offshore China where acreage is open to foreign cooperation. CNOOC Group has transferred to the Company all its rights and obligations under the existing and future PSCs (except those rights and obligations related to the management and supervision that should be implemented by a State Corporation).
Bohai is the largest crude oil production base ylzzcom永利总站检测中心 China and also the most important crude oil producing area for the Company. ylzzcom永利总站检测中心 2025, the Company made three new discoveries and successfully appraised 10 oil and gas bearing structures ylzzcom永利总站检测中心 Bohai. Among them, the successful appraisal of Qinhuangdao 29-6 Oilfield, with proved ylzzcom永利总站检测中心-place volume of 100-million-ton, demonstrated the promising exploration prospects of the shallow lithologic area ylzzcom永利总站检测中心 Bohai. During the year, Bozhong 26-6 Oilfield Development Project (Phase I), Luda 5-2 North Oilfield Phase II Development Project, Caofeidian 6-4 Oilfield Comprehensive Adjustment Project, and Kenli 10-2 Oilfield Group Development Project (Phase I) all were put into operation.
Western South China Sea is the Company’s important natural gas production areas. ylzzcom永利总站检测中心 2025, the Company made two new discoveries and successfully appraised 13 oil and gas bearing structures ylzzcom永利总站检测中心 the Western South China Sea. Among them, Weizhou 10-5 and Weizhou 10-5 South were newly discovered, demonstrating the broad exploration prospects of the buried-hill area ylzzcom永利总站检测中心 the Beibu Gulf Basin. Multiple oil and gas bearing structures including Lingshui 17-2 and Lingshui 25-1 were successfully appraised, showing remarkable results ylzzcom永利总站检测中心 integrated exploration and development for progressive reserve growth. During the year, Dongfang 29-1 Gas Field Development Project, Wenchang 19-1 Oilfield Phase II Project, Wenchang 9-7 Oilfield Development Project, Weizhou 5-3 Oilfield Development Project, Dongfang 1-1 Gas Field Block 13-3 Development Project, Wenchang 16-2 Oilfield Development Project, and Weizhou 11-4 Oilfield Adjustment and Satellite Fields Development Project were put into operation.
Eastern South China Sea is one of the Company’s important crude oil producing areas. ylzzcom永利总站检测中心 2025, the Company made one new discovery and successfully appraised three oil and gas bearing structures ylzzcom永利总站检测中心 the Eastern South China Sea. ylzzcom永利总站检测中心 particular, Lufeng 13-8 Oilfield was successfully appraised, and its reserve scale was expanded. During the year, Panyu Block 10/11 Joint Development Project and Xijiang Oilfield Group Block 24 Development Project were successfully put into operation.
East China Sea is the Company’s natural gas producing area for the Yangtze River Delta region. ylzzcom永利总站检测中心 2025, the Company continued to optimize infill drilling ylzzcom永利总站检测中心 the East China Sea, sustained stable production of producing fields, advanced the transformation of unmanned and minimally manned offshore platforms, and accelerated the construction of offshore smart oil and gas fields.
We mainly engaged ylzzcom永利总站检测中心 the exploration, development and production of unconventional natural gas resources onshore China. We have established three major production bases, Linxing, Shenfu and Panhe, ylzzcom永利总站检测中心 the eastern edge of the Ordos Basin and the Qinshui Basin. ylzzcom永利总站检测中心 2025, the Company deepened the theory of coalbed methane enrichment ylzzcom永利总站检测中心 deep play, accelerated the appraisal of various types of gas fields including deep and medium-shallow plays, and added proved ylzzcom永利总站检测中心-place natural gas volume exceeding 100 billion cubic meters, among them, deep coalbed methane accounts for more than 80%. All these demonstrated the promising exploration prospects for deep coalbed methane.
By the end of 2025, China’s net proved reserves stood at 5,015.7 million BOE. Among them, net proved reserves of crude and liquids reached 3,385.7 million BOE; net proved reserves of natural gas reached 9,700.0 bcf. Our net proved oil and gas reserves have maintained steady growth. During the year, China’s net oil and gas production amounted to 536.9 million BOE, with a year-on-year growth of 9.0%. Among them, net production of crude and liquids reached 401.8 million BOE, with a year-on-year growth of 6.7%; net production of natural gas reached 799.5 bcf, with a year-on-year growth of 16.7%.
