CNOOC
883
3
exclusion reasons
3 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
CNOOC Limited is a state-owned enterprise and China’s dominant offshore oil and gas producer, deriving the vast majority of its revenue from the exploration and production of fossil fuels. The company’s core business is the development of offshore reserves, with its domestic crude output increasing by 11.5% year-on-year in a recent reporting period to reach 233.9 million barrels. Its production targets indicate China's offshore oil output will reach approximately 68 million tons by 2025, accounting for 80% of the national increase.
The company is actively expanding its resource base through new discoveries and enhanced recovery techniques. In 2025, CNOOC announced a new hydrocarbon find in the Beibu Gulf of the South China Sea, described as a “major breakthrough.” The company also reported that its heavy oil thermal recovery production had exceeded 1.3 million tons. Its operational interests extend internationally, including in oil and gas fields in Europe such as Buzzard and Golden Eagle, and it has expressed strong interest in increasing investment in Trinidad and Tobago's energy sector.
While CNOOC has indicated some diversification into offshore wind power, its strategic direction remains firmly anchored in fossil fuel expansion. This focus was underscored in 2025 when Beijing appointed a former coal industry executive as the company's chairman, with a mandate to balance delivering increased fossil fuel output with the energy transition. The company’s activities are central to China's efforts to boost domestic oil and gas production.
CNOOC was added to the US Commerce Department Entity List in January 2021 for materially assisting the Chinese military's construction and militarization of artificial islands in the disputed South China Sea.
CNOOC Limited is an integrated upstream oil and gas company, deriving its revenue from the exploration, development, and production of crude oil and natural gas. Its core business is the extraction of fossil fuels, making greenhouse gas emissions intrinsic to its operations. In 2024, the company reported total operational (Scope 1 and 2) greenhouse gas emissions of 12.8 million metric tons of CO2 equivalent. Its emissions intensity, a key peer-relative metric, is high; data from the Transition Pathway Initiative ranks CNOOC 56th out of 178 global companies for absolute emissions, while its oil production ranks 31st out of 85, indicating an emissions profile that is significant relative to its sector peers.
The company has announced a net-zero ambition for 2050 and reports implementing energy-saving measures and developing carbon capture projects. However, its primary strategic focus remains on growing fossil fuel production. Its climate targets lack the granular, interim milestones characteristic of a robust transition plan, and the company has not committed to aligning its capital expenditures with the International Energy Agency's Net Zero Emissions scenario. While CNOOC discloses emissions data and governance frameworks, its fundamental business model and growth trajectory are in direct tension with the rapid decarbonization required by the Paris Agreement.
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