CNOOC Offshore Wind Strategy, 40% Capacity Increase, 3.5 GW Target, and Ming Yang Partnership (2025-2026)

NOC Dual-Track Strategy: CNOOC Fossil Fuel Expansion vs. Renewable Projects

China National Offshore Oil Corporation is executing a dual-track strategy, using revenue from record hydrocarbon production to fund a deliberate expansion into offshore renewable energy, balancing national energy security mandates with long-term decarbonization goals. This approach uses the company’s extensive offshore engineering capabilities as a bridge between its legacy oil and gas operations and its future in green energy, creating a model now common among state-controlled energy firms.

• Between 2021 and 2024, CNOOC established its initial green energy portfolio, focusing on foundational offshore wind projects and early-stage carbon capture research, while consistently growing its fossil fuel output.
• The strategy intensified in 2025 and 2026, with CNOOC achieving a record net production of 777.3 million barrels of oil equivalent (BOE) in 2025 and setting a higher 2026 target of 780-800 million BOE.
• Concurrently, the company announced a major escalation in its green ambitions, committing to a 40% increase in its offshore wind capacity in 2026, aiming for a total installed capacity of 3.5 GW.
• This dual focus is also evident in its technology deployment, where CNOOC is applying smart technologies to enhance oilfield recovery while simultaneously pioneering integrated offshore energy platforms combining wind, solar, and aquaculture.

$112 B CAPEX Plan: CNOOC Investment in Hydrocarbons and Offshore Wind

CNOOC‘s capital allocation for 2025 reflects its dual priorities, with a substantial budget directed toward both expanding upstream oil and gas projects and scaling its low-carbon and renewable energy initiatives. The investments in green technology are no longer experimental but are large-scale commercial commitments designed to build a material new business line while mitigating emissions from core operations.

• In 2025, CNOOC designated a capital expenditure plan of 112 billion (currency unspecified, likely RMB) to cover its upstream development and strategic low-carbon investments.
• A significant portion of this investment is directed at achieving the 40% increase in offshore wind capacity during 2026, a project that leverages the company’s existing maritime and engineering supply chains.
• The company is also investing in operational decarbonization, targeting the consumption of over 1 billion k Wh of green electricity in 2025, a 30% year-over-year increase to reduce its Scope 2 emissions.
• These green investments are funded by a highly profitable core business, which is also receiving capital to increase domestic crude oil production capacity to between 65-70 million metric tons annually by 2030.

Table: CNOOC Strategic Investments (2025-2026)

CNOOC 3 Key Alliances, from Total Energies to Ming Yang (2025-2026)

CNOOC is leveraging strategic partnerships to execute its dual-track strategy, collaborating with technology providers to accelerate its renewable energy build-out and with other oil majors to secure international hydrocarbon resources. These alliances provide access to specialized technology, shared project risk, and entry into new markets, proving essential for both its green and traditional business lines.

• A critical partnership with turbine manufacturer Ming Yang Smart Energy was established in February 2026 to support CNOOC‘s goal of increasing its offshore wind capacity by 40%.
• In its international upstream business, CNOOC partnered with China National Petroleum Corporation (CNPC) in May 2026 for a joint venture to develop the deepwater Búzios oil field in Brazil, securing future production growth.
• The long-standing partnership with Total Energies in Uganda’s oil fields includes a key low-carbon component: the planned production of 20, 000 tons of Liquefied Petroleum Gas (LPG) to supply cleaner cooking fuel to the local market.

Table: CNOOC Strategic Partnerships

China vs. International: CNOOC Geographic Focus for Oil and Wind

CNOOC’s geographic strategy is bifurcated, concentrating its capital-intensive renewable energy developments domestically in China while pursuing international partnerships for upstream oil and gas growth. This approach aligns with national policy, using domestic offshore expertise to build a clean energy base in the South China Sea while securing diverse international energy sources in regions like South America and Africa.

• Between 2021 and 2024, CNOOC‘s international activities were primarily focused on conventional hydrocarbon exploration and development, with renewable projects confined to domestic pilot programs.
• From 2025 onwards, this has crystallized, with major projects like the Hainan CZ 7 offshore wind farm and the integrated solar-wind-fishery project being developed in Chinese waters.
• Simultaneously, the company’s most significant new hydrocarbon partnerships in 2025-2026 were international, including ventures in Brazil with CNPC and in Uganda with Total Energies.
• This geographic split mitigates risk, allowing CNOOC to leverage a controlled, supportive policy environment for its new energy ventures at home while accessing large, undeveloped fossil fuel resources abroad.

Commercial Scale: CNOOC Technology Maturity in Wind and CCUS

CNOOC is moving its sustainability-focused technologies from the pilot phase to commercial scale, particularly in offshore wind and Carbon Capture, Utilization, and Storage (CCUS). The company is leveraging its decades of offshore engineering experience to de-risk and standardize the deployment of these technologies, treating them as extensions of its core operational capabilities rather than separate R&D efforts.

• In the 2021-2024 period, CNOOC‘s green technology efforts were characterized by smaller-scale projects and feasibility studies. Its current 2025-2026 strategy marks a shift to industrial-scale implementation.
• The plan to achieve 3.5 GW of offshore wind capacity by the end of 2026 signifies that this technology has reached commercial maturity within the company’s portfolio, supported by a dedicated supply chain and project execution teams.
• CNOOC is advancing its CCUS programs toward industrialization, contributing to a 680, 000-ton reduction in carbon emissions in 2025, signaling a move from research to active emissions mitigation.
• The company is also deploying mature smart technologies for oilfield management to enhance efficiency, a strategy similarly used by firms like Saudi Aramco to maximize recovery and reduce the environmental footprint per barrel.

SWOT Analysis: CNOOC Strengths and Execution Risks in Sustainability

CNOOC‘s sustainability strategy is underpinned by its financial strength and offshore expertise but faces inherent contradictions between its growth targets for fossil fuels and renewables. This SWOT analysis examines the internal capabilities and external pressures shaping the company’s ability to execute its dual-track energy transition.

• Strengths: Deep offshore engineering expertise and a strong balance sheet funded by profitable oil and gas operations.
• Weaknesses: The conflicting mandates of increasing hydrocarbon production for energy security while simultaneously pursuing decarbonization.
• Opportunities: Leading China’s massive offshore wind market and becoming a key technology integrator for CCUS and integrated energy systems.
• Threats: Reputational risk from environmentally sensitive international projects and the potential for volatile oil prices to disrupt funding for long-term green initiatives.

Table: SWOT Analysis for CNOOC Sustainability Strategy

Scenario Modelling: CNOOC’s 3.5 GW Wind Target and CCUS Progress

The primary signal to watch for CNOOC is the execution of its 40% offshore wind capacity expansion in 2026; success would validate its dual-track strategy, while delays would signal that its transition is subordinate to its core hydrocarbon business. Progress on commercial-scale CCUS projects will be the second key indicator, determining if the company can meaningfully mitigate emissions from its growing fossil fuel base.

• If this happens: CNOOC announces the final investment decision and breaks ground on the wind projects needed to reach its 3.5 GW target by year-end 2026.
• Watch this: The company’s quarterly reports on capital expenditure allocation and official progress updates on turbine and foundation orders with partners like Ming Yang Smart Energy.
• This could be happening: This would signal that CNOOC is successfully managing its supply chain and project execution, confirming its transition from an oil and gas firm with green projects to an integrated energy company where renewables are a core growth pillar.
• If this happens: CNOOC announces specific, large-scale CCUS projects with defined capture volumes and operational start dates, moving beyond generalized commitments.
• Watch this: Announcements of technology partnerships, site selections for CO 2 injection, and capital commitments for CCUS infrastructure. The current green hydrogen risk environment may make CCUS a more attractive path.
• This could be happening: This would indicate a serious attempt to address the emissions from its fossil fuel operations, positioning CCUS as a long-term license to operate for its core business rather than a peripheral activity.

The questions your competitors are already asking

This report covers one angle of CNOOC’s dual-track energy strategy. The questions that matter most depend on your work.

• Ming Yang large offshore wind turbine models
• China offshore wind project locations South China Sea
• CNOOC carbon capture project details
• National oil company renewable energy investments

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