Summary by Futu AI
CNOOC released a feasibility analysis report on conducting hedging operations on October 28, 2024. The report indicates that the company and its subsidiary responsible for oil sands production and crude oil trading will hedge through futures and derivative trading to avoid market price fluctuation risks. The planned scale of hedging operations by the company will not exceed 90% of the annual production scale, and the types of trades will be limited to products related to oil sands production and crude oil trading. The report also mentions that the company has established a comprehensive hedging operation management system and internal control system, and all trading counterparties are internationally renowned financial institutions. Additionally, the company will only use its own funds for hedging transactions, without involving fundraising. The report concludes that conducting hedging operations is necessary and feasible for the company, helping to improve financial predictability and control operational risks.