<div id="readability-page-1"><div><p>CNOOC (SEHK:883) is back in focus after awarding SLB’s OneSubsea a multi well EPC contract for subsea systems at the deepwater Kaiping 18-1 project in the South China Sea.</p> <p>See our latest analysis for CNOOC.</p> <p>The Kaiping 18-1 award lands at a time when momentum in CNOOC’s shares has clearly picked up, with a 17.66% 30 day share price return at HK$29.58 contributing to a 45.14% 90 day move and a very large 5 year total shareholder return, suggesting sentiment has shifted firmly in its favor.</p> <p>If this deepwater project has you thinking more broadly about energy opportunities, it could be a good moment to scan 87 nuclear energy infrastructure stocks</p> <p>With CNOOC shares up 71.72% over the past year and trading at a reported 54.55% intrinsic discount, the key question is simple: is this still mispriced value, or is the market already factoring in future growth?</p> <h2>Most Popular Narrative: 26% Overvalued</h2> <p>CNOOC’s most followed narrative puts fair value at HK$23.52, which sits well below the latest close at HK$29.58. That gap frames the story.</p> <blockquote> <p><em>Robust investment in reserve expansion and accelerated project development, including multiple new discoveries and rapid project turnarounds (for example, Bozhong 26-6 going from discovery to production in 3 years), positions CNOOC to sustain double-digit production growth, directly supporting higher long-term revenue and cash flow.</em></p> </blockquote> <p><em>Read the complete narrative.</em></p> <p>Want to see what growth path justifies that fair value cut, even with new projects coming online? The narrative leans heavily on measured revenue gains, firm margins, and a future earnings multiple that stays below many large peers while still assuming consistent profitability.</p> <p><strong>Result: Fair Value of HK$23.52 (OVERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this hinges on oil and gas remaining resilient, while global transition and tighter climate rules could pressure long term demand, pricing power and CNOOC’s offshore heavy asset base.</p> <p>Find out about the key risks to this CNOOC narrative.</p> <h2>Another View: Multiples Point The Other Way</h2> <p>While the most popular narrative flags CNOOC as 26% overvalued against a HK$23.52 fair value, the current valuation signals tell a different story. At around 10x P/E versus 13x for the Hong Kong Oil and Gas industry, 13.5x for peers, and a fair ratio of 13.6x, the market is pricing CNOOC at a clear discount. Is this a warning that earnings quality is at risk, or a gap that could close if sentiment stays strong?</p> <p>For a closer look at how those P/E gaps might matter in practice, See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/1bf9e34d-602b-4946-9e89-7c125fd9b5a9/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTE5?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/1bf9e34d-602b-4946-9e89-7c125fd9b5a9/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTE5"/><figcaption>SEHK:883 P/E Ratio as at Mar 2026</figcaption></figure><h2>Next Steps</h2> <p>With sentiment clearly divided, do you lean toward the risk story or the reward story here? Act while the data is fresh and shape your own view by weighing the 2 key rewards and 1 important warning sign</p> <h2>Ready for more investment ideas?</h2> <p>If CNOOC has caught your attention, do not stop here. The next opportunity could already be on the radar in a different corner of the market.</p> <ul> <li>Target steady compounders by scanning companies that trade below perceived value and pair quality with attractive entry points through the 219 high quality undervalued stocks.</li> <li>Prioritise resilience by focusing on businesses with robust finances and solid fundamentals using the solid balance sheet and fundamentals stocks screener (385 results).</li> <li>Seek hidden potential by filtering for under followed names with strong metrics through the screener containing 590 high quality undiscovered gems.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><div><p>• Dividend Powerhouses (3%+ Yield)<br/>• Undervalued Small Caps with Insider Buying<br/>• High growth Tech and AI Companies</p><p>Or build your own from over 50 metrics.</p></div><p>Explore Now for Free</p></div></div></div>

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<p>CNOOC (SEHK:883) has awarded SLB’s OneSubsea a multi well EPC contract for the Kaiping 18-1 deepwater project, signaling potential growth. The company's shares have risen 71.72% over the past year, but are considered 26% overvalued at a fair value of HK$23.52. Despite this, CNOOC's current P/E ratio of around 10x suggests a discount compared to industry peers. The analysis highlights the need to weigh risks and rewards in light of market sentiment and future growth prospects.</p>

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CNOOC (SEHK:883) Valuation Check As New Deepwater EPC Award Signals Upstream Growth Potential