Overview Key strengths Key risks Dominant position in China's offshore exploration and production (E&P) segment. Exposure to the cyclical oil and gas industry. Satisfactory reserve life and steady production growth. Global energy transition trend increases long-term substitution and growth risks for the oil and gas industry. Robust balance sheet with a strong cash balance. Extremely high likelihood of extraordinary support from China's central government. We assume Brent crude oil prices will fall to US$85 per barrel for the rest of 2023 and stay flat in 2024 onwards on an improved global supply-and-demand balance. This compares with average price of US$101 per barrel for 2022. Relatively high oil prices, enlarged output, and continued cost controls will support CNOOC and its flagship
