China National Offshore Oil Corporation (CNOOC) has divested its US subsidiary and upstream assets in the Gulf of Mexico to INEOS, a British chemicals group.
The transaction includes CNOOC Energy Holdings USA’s non-operator interests in projects such as the Appomattox and Stampede fields.
A source familiar with the matter told Reuters that INEOS paid just under $2bn for the assets, although neither CNOOC nor INEOS has confirmed the transaction price.
The sale is in line with CNOOC’s strategy to optimise its global asset portfolio, and the company is committed to ensuring a smooth transition to INEOS, according to CNOOC International Chairman Liu Yongjie.
CNOOC has reportedly been exploring the sale of its interests in US oil and gas fields since 2022.
This move follows reports that the company might divest operations in Britain, Canada and the US due to potential risks of Western sanctions, as China has not condemned Russia’s actions in Ukraine.
In October 2024, CNOOC announced its results for the first three quarters of the year, reporting a 19.5% growth in net profit attributable to equity shareholders, touching 116.66bn yuan ($16.34bn).
The company’s oil and gas revenues reached 271.43bn yuan, a 13.9% year-on-year increase, despite flat Brent crude prices during the period.
CNOOC achieved record highs in both net production and profit for the first nine months of 2024, supported by robust operational efficiency and effective cost control measures.
CNOOC has recently commenced production at the Jinzhou 23-2 oilfield development project, located in the northern Bohai Sea at an average water depth of approximately 13m.
Equipped with two new central processing platforms, the field is expected to reach peak production of around 17,000 barrels of oil equivalent per day by 2027.
