Page 6 - NorthAmOil Week 16 2022

NorthAmOil COMMENTARY NorthAmOil

CNOOC Ltd reportedly set to

exit US, Canada and UK over

sanctions fears

China’s CNOOC Ltd is reportedly preparing to exit its operations across

the US, Canada and the UK on fears that its assets could become
subject to sanctions

GLOBAL STATE-OWNED China National Offshore Oil April 11 that it would raise CNY28.08bn yuan
Corp. (CNOOC) is reportedly preparing to exit ($4.41bn) from the listing, after setting the price
WHAT: its operations across the US, UK and Canada. for what will be mainland China’s 11th largest
CNOOC Ltd is reported to Industry sources cited by Reuters attributed this offering of public stock.
be preparing to exit its to fears that its assets in those countries could
operations in the US, UK become subject to Western sanctions. Overseas assets
and Canada. This comes amid ongoing tensions between CNOOC Ltd’s assets in the US, UK and Canada
China and the West over issues including trade include stakes in projects in the Gulf of Mexico,
WHY: and human rights that could now be exac- the North Sea and the Alberta oil sands. Accord-
The state-owned erbated by Beijing’s neutrality on the war in ing to Reuters calculations, they produce a com-
company is said to Ukraine. Indeed, the US warned in early April bined 220,000 barrels of oil equivalent per day
be concerned that its that China could face consequences if it helped (boepd).
assets in those countries Russia to evade the sanctions that have been Reuters originally reported in late March that
could become subject to imposed on it in recent weeks. the company had hired Bank of America to start
sanctions. While the move has not yet been confirmed, it preparing a sale of its North Sea assets. Accord-
also comes as CNOOC Ltd, the company’s listed ing to four banking and industry sources cited
WHAT NEXT: arm, reportedly carries out a global review of by the news service, the sale of those assets could
The reports come as its portfolio ahead of its planned initial public raise more than $3bn.
CNOOC prepares to list offering (IPO) on the Shanghai Stock Exchange The North Sea assets – along with the stakes
on the Shanghai Stock later this month. The listing is being pursued to the company owns in projects in the US and
Exchange. raise funds after the delisting of the company’s Canada – were acquired when CNOOC bought
US shares in October 2021. CNOOC Ltd said on Canada’s Nexen for $15bn in 2013. This was its

CNOOC Ltd was
recently reported
to have hired Bank
of America to start
preparing a sale of its
North Sea assets.

P6 www. NEWSBASE .com Week 16 21•April•2022