CNOOC Exits U.S. Operations

CNOOC Ltd, China’s state-owned oil and gas giant, has announced the sale of its U.S. subsidiary and its oil and gas assets in the Gulf of Mexico. The buyer, British chemicals group INEOS, acquires non-operator interests in key projects like the Appomattox and Stampede fields.

Strategic Move to Optimize Assets

The sale aligns with CNOOC’s strategy to optimize its global portfolio, according to Liu Yongjie, chairman of CNOOC International. The company has committed to working with INEOS for a smooth transition.

Sale Triggered by Geopolitical Concerns

CNOOC had been exploring potential buyers for these assets since 2022, citing concerns over potential Western sanctions. China’s neutral stance on Russia’s invasion of Ukraine raised apprehensions about operating in regions like the U.S., Canada, and Britain.

INEOS Expands Energy Portfolio

For INEOS, this acquisition marks a significant expansion into the upstream oil and gas sector, enhancing its energy portfolio.

Optimizing Global Footprint

CNOOC’s move is part of a larger effort to navigate geopolitical risks while refocusing on areas that offer strategic growth opportunities.

Broader Industry Implications

The transaction reflects growing concerns among Chinese companies about Western markets, especially in politically sensitive sectors like energy.

CNOOC’s decision to divest underscores the complexities of operating in a globalized but geopolitically charged energy market.