294. AI Analysis of CNOOC’s Recent Exploration Progress

Based on AI analysis of CNOOC Limited’s 2025 Annual Report, Interim Report, and other authoritative sources, the following summarizes CNOOC’s recent exploration progress. I. Stabroek Block Stake and Resource Scale in Guyana CNOOC holds a 25% non-operating interest in the Stabroek Block offshore Guyana through its wholly owned subsidiary, CNOOC Petroleum Guyana Limited. The block is operated by ExxonMobil (45% stake) and Hess (30% stake, later merged into Chevron). As of end-2025, the Stabroek Block’s cumulative recoverable resources exceeded 11 billion barrels of oil equivalent (Bboe). Applying CNOOC’s 25% equity share, its net attributable resource volume stands at approximately 2.75 Bboe. Net new discoveries attributable to CNOOC during 2022–2025 totaled 1.5–2 Bboe—not the cumulative equity resource base. According to Wood Mackenzie, over the past decade CNOOC has made cumulative discoveries exceeding 7 Bboe globally—including in China’s offshore waters and deepwater Guyana—ranking second only to ExxonMobil among global oil & gas companies. In 2025, CNOOC successfully appraised the Lukanani and Ranger fields within the Stabroek Block, further solidifying the block’s resource foundation. CNOOC continues active participation in subsequent development projects: Development Project Start Year Production Capacity CNOOC Equity Share Liza Phase 1 & 2 2019 / 2022 — 25% Payara 2023 — 25% Yellowtail Commissioned in 2025 250,000 bpd 25% Uaru Expected in 2026 — 25% Whiptail Expected in 2027 250,000 bpd 25% The Whiptail project’s total development cost is approximately USD 12.7 billion; CNOOC’s 25% share amounts to ~USD 3.18 billion. Cumulative investment by CNOOC across all six Stabroek development projects now totals ~USD 17.7 billion, making Guyana CNOOC’s largest overseas upstream asset. II. Detailed Exploration Results for First Half of 2025 Per CNOOC’s 2025 Interim Report: • Global total: 5 new discoveries and successful appraisal of 18 hydrocarbon-bearing structures. • China’s offshore waters: All five new discoveries were located here—Longkou 25-1, Jinzhou 27-6, Caofeidian 22-3, Weizhou 10-5, and Weizhou 10-5 South-2-5. • Overseas: No new commercial discoveries announced in H1 2025, but two key contracts were signed. According to CNOOC’s full-year 2025 performance announcement, the company achieved six new discoveries—all in China’s offshore waters. Overseas activities included: 1. Stabroek Block, Guyana: Successful appraisal of the Lukanani and Ranger fields (not new discoveries, but incremental resource additions within the existing block); 2. Zhylyoi Block, Kazakhstan: Exploration and Production Contract signed in June 2025; CNOOC holds 50% equity and serves as joint operator; 3. Block 7, Iraq: Petroleum contract entered into force in February 2025; CNOOC holds 100% equity and serves as operator; 4. Indonesia: New exploration project added (specific block not disclosed).

Profits Exceeding the Combined Totals of ExxonMobil and Chevron! What Enables Saudi Aramco’s Profitability?

Today, the notion that ‘energy needs computing power’ has become a global consensus across the energy industry—and an ongoing debate is unfolding within the oil & gas sector regarding the tangible value of intelligent technology investments. Multi-million- or even billion-dollar expenditures on computing infrastructure, algorithm development, and digital systems—are these merely superficial ‘window dressing,’ or genuine transformation tools capable of consistently generating real financial returns? How Are International Oil Majors Exploring and Deploying Intelligent Technologies? Some international oil majors have already moved beyond pilot-stage experimentation to achieve large-scale, commercially validated deployments where value is quantifiable. Intelligent technologies are now deeply embedded across the entire upstream value chain—from exploration and reservoir development to equipment maintenance—directly impacting core economic metrics such as breakeven oil price, payback period, and operating costs. The Permian Basin in the U.S. is the global benchmark for shale oil development. Public data shows that continuous iteration of digital and intelligent technologies—including AI—has reduced Chevron’s Permian Basin breakeven oil price from USD 90/bbl in 2012 to USD 40/bbl today, with core assets maintaining breakeven levels stably below USD 45/bbl. Intelligent technologies have driven comprehensive operational optimization: since 2019, field execution efficiency in the basin has improved by over 80%, while AI applications have cut drilling costs by 25%–50%. This transformation is not the result of isolated algorithm upgrades or single-point equipment enhancements delivering short-term gains. Rather, it reflects a systemic efficiency revolution powered by AI. Machine learning models predict high-productivity reservoir distribution; dynamic optimization refines hydraulic fracturing and production strategies; and intelligent scheduling shortens drilling and workover cycles—continuously expanding the economic viability frontier for shale oil development. Amid volatile global oil prices, lower breakeven points significantly enhance asset resilience, clearly demonstrating how intelligent technologies can fundamentally reshape the underlying profitability of oil & gas assets. Upstream projects involve massive capital investment, and project duration directly determines capital tie-up, operating expenses, and return on investment. ExxonMobil, in deep collaboration with IBM, has leveraged AI to reconstruct its drilling planning process—reducing traditional planning and design timelines from nine months to seven months, and cutting data preparation workload by 40%. Deep learning algorithms have compressed seismic interpretation timeframes from months to days, dramatically accelerating exploration evaluation. In key offshore blocks in Guyana, intelligent drilling systems compute optimal parameters in real time, enabling closed-loop intelligent control of drilling operations and minimizing uncertainties arising from manual intervention. ExxonMobil’s approach is notably pragmatic: this century-old oil company treats AI as a tool to digitize and model expert knowledge—translating time-based efficiency gains—such as shortened project timelines and reduced non-productive time—directly into cost advantages. How Is Intelligent Technology Applied in Offshore Oil & Gas Development? Unlike large-scale, onshore shale resources abroad, China’s offshore oil & gas development faces unique challenges. Many domestic mature fields exhibit the classic ‘low-permeability, low-pressure, low-abundance’ characteristics. For example, in the Western South China Sea Basin, low- and ultra-low-permeability reservoirs account for over 30% of total reserves. Meanwhile, many offshore fields have entered mid-to-late development stages, facing increasingly severe challenges including heavy-oil production and high water cut. Relying solely on conventional development methods, marginal returns continue to decline, making stable production and output growth in mature fields ever more difficult.

Exxon Uses AI for Faster Analysis of Guyana's Oil Fields, VP Says

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Exxon Mobil is utilizing AI to process Guyana oil field seismic data in days rather than months, enabling the extraction of previously overlooked assets. This technological shift was highlighted by the company's VP of exploration at the Offshore Technology Conference.

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