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Chinese Oil Giant to Leave Canada, the UK and United States Due to Sanction Fears

CNOOC headquarters
Headquarters of China National Offshore Oil Corp (CNOOC) Ltd in Beijing. [Photo/China Daily]

CNOOC Ltd., China’s leading offshore oil and gas producer, is prepared to abandon its operations in Britain, Canada, and the United States, according to industry insiders.

Since Russia’s invasion of Ukraine, China has declined to condemn it, which has aggravated the already fragile ties between China and the West.

According to a statement made by the United States last week, China could suffer consequences for aiding the Russian government in evading Western sanctions that restrict Russia’s access to foreign currency and make international payments more challenging for Russia.

The exit would happen less than a decade after state-owned CNOOC bought Canadian oil company Nexen for US$15 billion, which made the company a major player in the world market.

Some of the assets that Reuters looked at, which include stakes in large oil fields in the North Sea as well as large oil sand developments in Canada, produce about 220,000 barrels of oil equivalent per day (boed).

CNOOC, has begun a global portfolio review ahead of its planned public listing on the Shanghai stock exchange later this month, sources say. The goal is to find new sources of money after the delisting of its U.S. shares last October.

This was part of a move made by the Trump administration in 2020 to delist a number of Chinese companies that the Trump administration said were owned or controlled by the Chinese military. However, China condemned the move.

After Russia’s invasion of Ukraine on February 24, oil and gas prices have surged, and CNOOC is hoping to draw buyers as Western countries attempt to boost their own domestic energy production to replace Russian oil and gas.

According to the sources, as part of CNOOC’s strategy to exit the West, the company is actively seeking new assets in Latin America and Africa, with a particular focus on Brazil, Guyana, and Uganda.

Original source material for this article taken from here

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