CNOOC : 2017 Business Strategy

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(Incorporated in Hong Kong with limited liability under the Companies Ordinance)

2017 Business Strategy

In line with its policy of keeping the market informed of its activities, the Company announces a summary of its business strategy and development plan for the year 2017.

This announcement includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends"and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company that it believes are appropriate under the circumstances. However, whether actual results and developments will meet the expectations and predictions of the Company depend on a number of risks and uncertainties which could cause the actual results, performance and financial condition to differ materially from the Company's expectations. For a description of these risks and uncertainties, please see the documents the Company files from time to time with the United States Securities and Exchange

Commission, including the Annual Report on Form 20-F filed in April of the latest fiscal year.

In line with its policy of keeping the market informed of its activities, CNOOC Limited (the "Company") announces a summary of its business strategy and development plan for the year 2017.

The Company's targeted net production for 2017 is 450 million to 460 million barrels of oil equivalent (BOE)*, of which, production from China and overseas accounts for approximately 65% and 35%, respectively. The Company's net production for 2016 is expected to be approximately 476 million BOE. The Company's net production for 2018 and 2019 are estimated to be 455 million to 465 million BOE and 460 million to 470 million BOE, respectively.

In 2017, five new projects are expected to come on stream, among which, Penglai 19-9 oil field comprehensive adjustment and Engping 23-1 oil fields in offshore China already came on stream. The other three projects are Weizhou 12-2 oil field Phase II in offshore China, BD gas field in Indonesia and Hangingstone project in Canada. Currently, nearly 20 projects are under construction.

In 2017, the Company plans to drill 126 exploration wells and acquire approximately 13 thousand square kilometers 3-Dimensional (3D) seismic data.

The Company's total capital expenditure for 2017 is budgeted at RMB60.0 billion to RMB70.0 billion. The capital expenditures for exploration, development and production account for approximately 18%, 66% and 15%, respectively. The Company will maintain prudent financial policy, improve capital efficiency and ensure sustainable development.

* Including our interest in equity-accounted investees.

By Order of the Board

CNOOC Limited Li Jiewen

Joint Company Secretary

Hong Kong, 19 January 2017

As at the date of this announcement, the Board comprises the following:

Yang Hua (Chairman) Chiu Sung Hong

Yuan Guangyu Lawrence J. Lau

Tse Hau Yin, Aloysius Kevin G. Lynch

Non-executive Directors Liu Jian (Vice Chairman) Wu Guangqi

This announcement includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify such forward-looking statements.

These statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate under the circumstances. However, whether actual results and developments will meet the expectations and predictions of the Company depends on a number of risks and uncertainties which could cause the actual results, performance and financial condition to differ materially from the Company's expectations, including those associated with fluctuations in crude oil and natural gas prices, the exploration or development activities, the capital expenditure requirements, the business strategy, whether the transactions entered into by the Group can complete on schedule pursuant to the terms and timetable or at all, the highly competitive nature of the oil and natural gas industries, the foreign operations, environmental liabilities and compliance requirements, and economic and political conditions in the People's Republic of China. For a description of these risks and uncertainties, please see the documents the Company files from time to time with the United States Securities and Exchange Commission, including the Annual Report on Form 20-F filed in April of the latest fiscal year. Consequently, all of the forward-looking statements made in this announcement are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realised or, even if substantially realised, that they will have the expected effect on the Company, its business or operations.