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CNOOC looking to divest $2bn worth of assets in the US

CNOOC looking to divest $2bn worth of assets in the US

 

Chinese oil and gas major CNOOC is considering the sale of its interests in oil and gas assets in the US to raise approximately $2bn, reported Reuters, citing two sources.

The Chinese firm is accelerating its retreat from Western nations as political tensions between China and western countries continue to escalate after it refused to condemn Russia’s invasion of Ukraine.

As part of the retreat plan, CNOOC has appointed JPMorgan as an adviser for the potential sale of its interests in shale gas assets in the US, according to sources familiar with the matter.

The sources said there is no certainty that a sale agreement would be signed and CNOOC may even retain its stake in the US assets.

In the US, the Chinese major holds stakes in onshore assets located in the Eagle Ford and the Rockies shale basins, as well as stakes in the Appomattox and Stampede fields in the Gulf of Mexico.

CNOOC is also in talks for the sale of its assets in the Gulf of Mexico to UK-based oil and gas producer Harbour Energy.

CNOOC owns interests in oil and gas assets in the Eagle Ford basin in south Texas. These assets are owned by US-based Chesapeake Energy, which is also looking to divest its assets.

One of the sources said that Chesapeake ’s decision would not impact CNOOC’s plans.

In April this year, Reuters reported that CNOOC was considering exiting its operations in Canada, Britain, and the US over concerns that its assets could face sanctions from the Western countries.

To strengthen energy security, China is mandating an increase in domestic production by firms, including CNOOC, and investing in new and challenging resources.

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Published: 24-11-2022

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