CNOOC announced on October 28, 2024, that in order to hedge the price fluctuations of commodities such as crude oil and natural gas, the company will only conduct futures and derivatives trading for hedging purposes. The transactions will be limited to products and raw materials related to the company's oil sand production and crude oil trading, and the variety of transactions will be limited to futures contracts for crude oil, natural gas, and their derivatives on mainstream domestic and foreign exchanges. The company expects the maximum margin requirement for hedging business to not exceed $0.45 billion and will be recycled within the effective period. In addition, the company has established a comprehensive hedging business management system and internal control system to ensure...Show More

CNOOC announced on October 28, 2024, that in order to hedge the price fluctuations of commodities such as crude oil and natural gas, the company will only conduct futures and derivatives trading for hedging purposes. The transactions will be limited to products and raw materials related to the company's oil sand production and crude oil trading, and the variety of transactions will be limited to futures contracts for crude oil, natural gas, and their derivatives on mainstream domestic and foreign exchanges. The company expects the maximum margin requirement for hedging business to not exceed $0.45 billion and will be recycled within the effective period. In addition, the company has established a comprehensive hedging business management system and internal control system to ensure that the trading matches the risk exposure that needs to be managed, effectively mitigating commodity price fluctuation risks. This hedging business has been approved at the seventh board of directors meeting in 2024 without the need for shareholder approval. The company emphasizes that the conducted hedging business will strictly adhere to hedging principles, not for speculative purposes, but still faces risks such as market, funding, technology, operation, credit, and policy risks.